Yahoo! shuts auctions, loses eBay battle

Yahoo! is to close its auctions website this summer in the face of eBay’s overwhelming market dominance.

Yahoo! Auctions will be shut down in the US and Canada from June, but sites in Hong Kong, Taiwan and Singapore will remain.

eBay enjoys a commanding 94% share of the US online auction space, against Yahoo!’s 0.19%, according to the latest Hitwise statistics.

The two also formed a commercial alliance last year, which gives eBay’s PayPal billing on Yahoo!’s shopping facilities.

A message on Yahoo! Auctions announced:

“After careful consideration, we have decided to close down our Yahoo! US and Canada Auction sites to better serve our valued customers through other Yahoo! properties.”

Yahoo! also revealed last week that it was shutting its Photos picture storing platform and focusing instead on upstart Flickr.