eBay is starting to get hurt a lot by its FREE rival classified site, Craig’s List. So, what did the company do? It bought the company. Craig’s List, the popular local classified site, has grown so much in popularity that the concept is spreading all over the world. KnightRidder, the newspaper chain, is making its advertising free online because it was getting crushed by Craig’s List. eBay has also started a free advertising site outside the U.S. known as kajiji.com. With these free local sites, there is no protection against fraud or other crimes. But prospective buyers can check out goods before they buy because everything is local. We’ll see how all of these pan out.