Taobao commits to free services

Chinese online auction website Taobao will invest US$120 million to extend its free service commitment for another three years in a bid to attract more users and undercut global operator eBay, state media reported. Taobao, owned by Chinese e-commerce website Alibaba, of which Yahoo! owns a 30% stake, has spent US$55 million ensuring free services since it opened in May 2003, while eBay charges users for listings and transactions. The Chinese group has 10 million users and boasts of 100 million page views a day.