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e Bay owned approximately 25%, and Newmark is believed to own the largest stake.

to "remedy the substantial and ongoing harm to fair competition" that Craigslist claimed was constituted by e Bay's actions as Craigslist shareholders; the company claimed that it had used its minority stake to gain access to confidential information, which it then used as part of its competing service Kijiji. announced that it would divest its stake back to Craigslist for an undisclosed amount, and settle its litigation with the company.

The site received criticism and complaints from attorneys general that the section's ads were facilitating prostitution and child sex trafficking.

Matt Zimmerman, senior staff attorney for the Electronic Frontier Foundation, said, "Craigslist isn't legally culpable for these posts, but the public pressure has increased and Craigslist is a small company." Brian Carver, attorney and assistant professor at UC Berkeley, said that legal threats could have a chilling effect on online expression.

Craigslist (stylized as craigslist) is an American classified advertisements website with sections devoted to jobs, housing, personals, for sale, items wanted, services, community, gigs, résumés, and discussion forums. In March 2008, Spanish, French, Italian, German, and Portuguese became the first non-English languages Craigslist supported.

Buckmaster contributed the site's multi-city architecture, search engine, discussion forums, flagging system, self-posting process, homepage design, personals categories, and best-of-Craigslist feature. On August 1, 2004, Craigslist began charging to post job openings on the New York and Los Angeles pages."If you impose liability on Craigslist, You Tube and Facebook for anything their users do, then they're not going to take chances.It would likely result in the takedown of what might otherwise be perfectly legitimate free expression." Craigslist announced on September 15, 2011, that it had closed its adult services in the United States, however, it defended its right to carry such ads.Community members started asking for a web interface.Newmark registered "craigslist.org", and the website went live in 1996.

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The move came shortly before e Bay's planned spin-off of Pay Pal, and an effort to divest other units to focus on its core business.