eBay Australia Sellers Oppose PayPal Plan

    July 1, 2008

Last month the Australian Competition and Consumer Commission (ACCC) introduced a draft proposal to put eBay Australia’s plan to move to a PayPal – only system on hold.

Yesterday in Sydney eBay sellers gathered at a conference organized by the ACCC to discuss the draft proposal before the July 3 deadline for submissions. The sellers urged the ACCC to not to allow eBay to go to a PayPal only system in the country.

In its original draft notice the ACCC said it ,"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."

eBay argues that the main reason it wants to switch to PayPal only is because of security. The company says that its PayPal system is more secure than other payment methods and that users are less likely to have disputes using it.

At the conference, Simon Smith, vp, eBay Australia said in a statement,"Buyers stop using eBay if they have a bad experience. That is bad for sellers. To make eBay safe the best way to pay is PayPal or in person."

eBay sellers are opposed to the policy because it would increase their fees since PayPal charges them for each transaction. Also they argue that PayPal is not any more secure than other payment methods.

The ACCC is expected to make its final decision on the matter by the end of July.