Australian eBay users won't be forced to use PayPal

eBay has failed in its plans to introduce a compulsory PayPal scheme for its Australian users. The company withdrew an announcement to that effect from the Australian Competition and Consumer Commission (ACCC). This commission, responsible for consumer and competition issues, had initiated measures to impose sanctions on eBay for anti-competitive practices.

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In future, the company wanted to force users to pay for all transactions, except cash payments for items picked up in person, through eBay subsidiary PayPal. Competitors offering alternative on-line payment services were no longer to be permitted. The company justified this by stating that the use of its own payment service increased the safety of on-line purchases.

The ACCC made it clear, however, that consumers ought to be able to decide for themselves which payment service to use. Conceding to eBay would make continued competition on the on-line platform impossible for these service providers. Such interference in competition would be especially grave, since in Australia, eBay is the leading on-line marketplace.

As Simon Smith, Managing Director of eBay Australia explained "We have decided to retract this announcement in order to avoid further irritations and quarrels within the eBay community". The Australian Professional eBay Sellers Alliance welcome to the step as, "great for the eBay community" – users could finally turn their attention completely back to business.

(trk)