Can eBay continue to force sellers to offer PayPal as an option?

Stan Beer
Monday, 16 June 2008 15:35

Opinion and Analysis

Since May 21, all eBay Australia sellers have been forced to offer PayPal as an option for buyers. However, the Australian Competition and Consumer Commission (ACCC) recently decided to deny eBay the right to enforce a PayPal only policy on its Australian site. Will the ACCC force eBay Australia to shut down its mandatory PayPal option for sellers?

This is the question on the lips of many sellers posting to eBay Australia forums right now. Many of them resent being forced to offer PayPal as an option and the fact, as one poster pointed out, that the PayPal button appears larger and more prominent than the direct bank transfer button.

After having its plan to enforce PayPal only payments on its website by June 17 crushed, eBay Australia has resorted to bravado stating it will fight the ACCC draft notice. eBay has stated on its Australian website that the new date for PayPal only enforcement is July 15 - presumably after the ACCC has made its final decision on the matter.

However, pushing through PayPal only enforcement may not be eBay Australia's only impossible dream. The auction site may also find that it cannot even force sellers to offer PayPal as an option.

In its published draft notice the ACCC was crystal clear about the rights of consumers taking precedence over what eBay claims is in their best interests.

"The ACCC believes that consumers are in the best position to decide which payment method is most suitable for them," the draft notice stated.

The ACCC was also clear about its view that eBay's conduct concerning PayPal in Australia is not acceptable.

"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.

So eBay Australia can pretty much kiss its PayPal only ambitions in Australia goodbye. But what about its recently introduced practice of forcing sellers to offer PayPal as an option? Please read on to page 2