ACCC's 'œpre-decision conference' on eBay and Paypal on today!

Alex Zaharov-Reutt
Sunday, 29 June 2008 20:25

Opinion and Analysis

ACCC Chairman, Mr Graeme Samuel, continued: "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.

"The notified conduct denies them that choice. Accordingly, the ACCC considers that these benefits do not outweigh the anti-competitive effects of the conduct.

"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.

The ACCC will consider all arguments from today’s pre-decision conference before it decides whether to issue a final notice revoking the notification.

In response to the ACCC’s request, eBay issued a notice to all Australian members on Friday 27 June that it was again delaying its Paypal-only implementation to an undetermined date in the future while it awaits the ACCC’s decision.

In an interview with iTWire editor Stan Beer, Caroline Coops competition partner at leading Australian law firm, Mallesons Stephens Jaques said: "Prohibiting sellers from including non-PayPal competitor payment systems in their listings strictly speaking falls outside the notification lodged with the ACCC but risks running counter to the "spirit" of eBay's agreement not to engage in the notified conduct."

Ms Coops also said: "It is unusual, but not unheard of, for the ACCC to issue a final notice that reverses the views expressed in a draft revocation notice."