Yesterday morning I received an email from Ebay which basically said that they are doubling their fees. Some fees were increased more than others, but generally their commission percentage and fees were going up, up, up.

I don't buy or sell a lot on Ebay, but others do, and they are none too happy. The AP reports that many small business owners who rely on Ebay may close their stores or look for other online options. Then there were others who looked for more tyranical options.

The changes, combined with eBay's dominance in the auction and online payment sectors, prompted some members to ask whether the government or a fair-business consortium should regulate fee structures so small-scale entrepreneurs don't get gouged.

"Yes, it is a free market and sellers can take their business elsewhere, but there is very little competition for this style format," said Artie Klawans, an art dealer in Ft. Lauderdale, Fla.

While I wasn't happy to see Ebay hike their fees, I don't think that using the threat of lethal force to get them to lower their price should even be an option. Ebay is not a monopoly, nor are they doing anything illegal. They are merely capitalizing on their own success.

For all their greed, Ebay has already seen their stock price drop 5% after the announcement. Buyers and sellers are already considering other online auction options, and Ebay is sure to lose market share. That is the way the free market works. When one company starts overcharging, customers go some place else. Getting the government involved is likely to make it worse for everyone involved.