Thread: eBay told to stop forcing Aussies to use PayPal

Temporary suspension on competition grounds

By John Oates → More by this author
Published Thursday 12th June 2008 11:26 GMT
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The Australian Competition and Consumer Commission has told eBay to stop plans to force Aussie buyers to use PayPal.
The move, which would do wonders for eBay's margins, was deeply unpopular with some eBay regulars but was expected go worldwide if successful.

The move to PayPal-only transactions was due to come into force next Tuesday. Aussie eBay sellers have had to offer PayPal as an option since May but from next week it would have been the only payment method accepted.
But ACCC chairman Graeme Samuel said: "The ACCC is concerned that the notified conduct will allow eBay to use its market power in the supply of online marketplaces to substantially lessen competition in the market in which PayPal operates."
Samuel said: "The ACCC acknowledges that having PayPal as the only payment provider has the potential to deliver some benefits to users, such as increased buyer protection insurance in certain circumstances. However, the ACCC believes that consumers are in the best position to decide which payment method is most suitable for them.
"The notified conduct denies them that choice. Accordingly, the ACCC considers that these benefits do not outweigh the anti-competitive effects of the conduct."
Because of these worries the ACCC asked eBay to suspend introduction of the PayPal only provisions until it had made a full decision.
eBay and other parties can now make submissions to the ACCC before it releases its final notice. eBay Australia was immune from prosecution for the changes because it notified the ACCC - that has now been suspended.
The ACCC received hundreds of complaints about the planned change, including one from Google.
The draft notice is here. ®

CHANGES ON EBAY POSTPONED

Changes to eBay.com.au scheduled for 15 July are being postponed until the review process with the Australian Competition and Consumer Commission (ACCC) regarding its recent draft notice is complete. As previously announced, eBay.com.au is continuing to work with the ACCC to achieve an outcome that benefits buyers and sellers.


Changes that came into effect on 21 May 2008, requiring all sellers to offer PayPal, will remain. These changes mean that all buyers have the option of choosing PayPal,
the safer payment method for shopping on eBay.com.au. Payment methods that are currently permitted will continue to be allowed on eBay.com.au until further notice.
Other recently introduced safety measures, such as PayPal Seller Protection and increased PayPal Buyer Protection (now up to $20,000) will also remain.
eBay regrets any ongoing uncertainty that this further delay may cause and will advise you of any future plans for implementation following the ACCC process.
As always, eBay appreciates the feedback received from the Community and will use this input to consider where we can make improvements that benefit both buyers and sellers.
eBay remains committed to improving safety and we will continue to look for ways to improve the shopping experience for buyers which will subsequently benefit both sellers and eBay.
Please note that some of our onsite communications may still refer to changes taking place on 15 July 2008. These communications are in the process of being updated.
Regards
The eBay Team