Australia Puts Brakes On eBay PayPal Only Plan

Cites competition concerns

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The Australian Competition and Consumer Commission (ACCC) have told eBay to put its plans to move to a PayPal only system on hold.

"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," ACCC Chairman, Mr. Graeme Samuel, said today.

eBay planned to move to a PayPal only system in two stages. Beginning May 21, 2008 all sellers on eBay were required to offer PayPal as one of their accepted payment methods. Then on June 17, eBay would require all transactions on the site be paid using PayPal or cash on delivery.  

"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," Samuel said.

The ACCC said 650 eBay users had sent submissions with the majority opposed to eBay’s plan to move to a PayPal only system. They voiced concerns about the restriction of choice, increased fees and issues about PayPal’s security.

"In light of the serious competition concerns raised in the draft notice and the significant concerns raised by interested parties, I have asked eBay to delay implementation of the second stage of the conduct until a final decision is made by the ACCC," Samuel said.

eBay and interested parties can now submit responses to the ACCC’s decision to order eBay to put its plan to move to a PayPal only system on hold. The ACCC will determine if it will allow eBay to go to its PayPal only option.

Australia Puts Brakes On eBay PayPal Only Plan
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  • Guest

    It isnt over yet ebay will not let this go till they get a suitable result for themselves.


    I have stopped buying and seeling on ebay Australia and have shifted over to bang4bucks.com.au  the service and features on the site are far better than ebay.

    It is great to see Australians stand up for whats right

    • Guest

      PayPal is a very unprofessional company.  Staff are either ill-trained or just don’t care. Emails are answered days later (if at all) and the responses often have little or nothing to do with the question. PayPal does not accept Australia Post’s telephone tracking system for Express Post and considers items "not shipped" that are posted this way because PayPal finds it personally inconvenient not to have everything trackable online. PayPal clears payments as "Okay to Ship", then takes the payments back from the seller after shipment and blames customers for its own accounting errors when the customer is not even aware there is a problem with payment.  Thanks to PayPal’s insecure email system, I’ve had dozens of "phishing" emails and viruses sent to me and heard dozens of horror stories of account and credit card details being used by scammers after innocent customers have provided these details to PayPal.  It is not a bank and refuses to subscribe to the EFT Code. PayPal is possibly the worst and least secure choice of any payment method and has created many more problems for sellers and customers than it helps. We are forced to use PayPal because eBAY owns it, but eBAY really bought a dog company and forcing everyone to use it is nothing more than a money grab. Shame on eBAY and PayPal both. Thank goodness we live in a country where democracy still works and people still have a choice.

  • Guest

    I wish ebay will realize that they are not a stock exchange and they do not own a Central Bank. If they want to flaunt their clout, at least they should get a banking license for Paypal.  Paypal has the worse service as a money transfer agent but the most dictatorial power over their customers.  I have never seen any bank or money transfer institution, including banks, which even dare to place a hold on my fund at will (Paypal’s will) without a court order.  How could they subject all seller to use paypal and ignore the day-to-day banking sysytem.  If they think they are above the law, they should do it without the market dominance protection of eBay. Thumbs up for australian ACCC

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