But sellers are still required to offer PayPal as a payment option
By Linda Rosencrance
July 10, 2008 (Computerworld)
EBay Inc. has withdrawn its plan to require sellers using its Australian auction site to only use PayPal -- a payment service owned by eBay -- as their electronic payments processor.
The decision came after angry sellers responded to the plan at a conference last week held by the Australian Competition and Consumer Commission (ACCC), a competition watchdog agency. The conference was set up to decide whether to allow eBay to institute its controversial policy, and the ACCC had signaled its intentions to block the auction giant's plan.
Although eBay's proposal would have allowed sellers to accept cash on delivery or when items were picked up, it would have not permitted them to accept direct bank deposits, checks or money orders. The new plan also would have required sellers to pay fees to PayPal Australia Pty. in addition to the fees it pays to eBay, something that infuriated the sellers.
After the conference, eBay decided to back off its plan and continue allowing sellers using its Australian auction site to accept all existing payments. However, those sellers must now offer PayPal as an option, the company said.
"We have decided to withdraw the notification to stop any further confusion and disruption among the eBay Community," eBay said in the statement. "eBay regrets any uncertainty that this process has caused among the community and believes that [this] decision will remove further doubt."
EBay had argued that using its PayPal service would cut down on fraud. "EBay's goal has always been to provide members with a safer experience," according to the statement. "Under the current circumstances, we will continue to look for ways to do that while still offering a variety of payment choices."
EBay said other safety measures it recently adopted for PayPal users, including a seller protection plan and enhancements to its buyer protection plan (which now includes coverage of up to $20,000), will remain in place.
But sellers are still required to offer PayPal as a payment option
By Linda Rosencrance
July 10, 2008 (Computerworld)
EBay Inc. has withdrawn its plan to require sellers using its Australian auction site to only use PayPal -- a payment service owned by eBay -- as their electronic payments processor.
The decision came after angry sellers responded to the plan at a conference last week held by the Australian Competition and Consumer Commission (ACCC), a competition watchdog agency. The conference was set up to decide whether to allow eBay to institute its controversial policy, and the ACCC had signaled its intentions to block the auction giant's plan.
Although eBay's proposal would have allowed sellers to accept cash on delivery or when items were picked up, it would have not permitted them to accept direct bank deposits, checks or money orders. The new plan also would have required sellers to pay fees to PayPal Australia Pty. in addition to the fees it pays to eBay, something that infuriated the sellers.
After the conference, eBay decided to back off its plan and continue allowing sellers using its Australian auction site to accept all existing payments. However, those sellers must now offer PayPal as an option, the company said.
"We have decided to withdraw the notification to stop any further confusion and disruption among the eBay Community," eBay said in the statement. "eBay regrets any uncertainty that this process has caused among the community and believes that [this] decision will remove further doubt."
EBay had argued that using its PayPal service would cut down on fraud. "EBay's goal has always been to provide members with a safer experience," according to the statement. "Under the current circumstances, we will continue to look for ways to do that while still offering a variety of payment choices."
EBay said other safety measures it recently adopted for PayPal users, including a seller protection plan and enhancements to its buyer protection plan (which now includes coverage of up to $20,000), will remain in place.
I doubt that is all over yet Icey. Don't feel like posting all the links, but Paymate has also now filed a complaint as well. And the issue of requiring PP on all listings I do not believe is fully resolved yet.
Ebay opened a can of worms. Too bad Americans are more 'domesticated' than the Auzzies.
They will just sit there and wait for the perverted sheepherder eb to ... um... well you know, and eb will not even need to sneak up behind them or wear the tall boots.
INTERNET-based payment service Paymate, a PayPal rival, has lodged a complaint with the competition regulator alleging that eBay has breached the Trade Practices Act.
From May 21, eBay amended its user agreement so sellers have to include PayPal as one of their payment methods for each listing.
This conduct, argues Paymate, restricts its ability and that of other payment options to be adopted because eBay mandates PayPal for sellers.
"It is our belief that eBay, in both Australia & New Zealand, is engaging in conduct in breach of the Trade Practices Act because the conduct amounts to anti-competitive exclusive dealing," Dilip Rao, Paymate managing director, said in his complaint letter to the ACCC last week.
"... it (eBay) is also engaging in misleading and/or deceptive conduct in breaching the Act," Mr Rao, who's company is based in Sydney, said.
eBay owns PayPal.
In April eBay had applied to the ACCC for legal immunity from sections of the TPA. Apart from the action in May, it had proposed a second conduct - to ban all forms of payment methods with the exception of PayPal and cash on delivery by June 17.
But on June 12, the ACCC revoked eBay's immunity in its draft notice issued.
"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 Graeme Samuel said.
"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," Mr Samuel said.
However, on July 3, eBay withdrew its notification and said it would no longer pursue the matter with the ACCC.
Today, the ACCC said it doesn't comment on complaints received or whether any investigations may or may not be under way.