A proposal by eBay that its PayPal unit would
become the sole avenue of payments for purchases on its Australian
website met stiff opposition from the Australian Bankers
Association, the Reserve Bank of Australia and rivals such as
internet payments specialist Paymate. Their protestations were
noted by the Australian Competition and Consumer Commission (ACCC)
which has acted to block eBay’s proposal.
become the sole avenue of payments for purchases on its Australian
website met stiff opposition from the Australian Bankers
Association, the Reserve Bank of Australia and rivals such as
internet payments specialist Paymate. Their protestations were
noted by the Australian Competition and Consumer Commission (ACCC)
which has acted to block eBay’s proposal.
“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,” said the ACCC’s Chairman, Graeme
Samuel in a statement.
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,” said the ACCC’s Chairman, Graeme
Samuel in a statement.
eBay implemented the first of two stages of its
proposal on 21 May 2008. This requires that all sellers on eBay
must offer PayPal as one of their accepted payment methods. The
second stage which would require all transactions be paid via
PayPal was due for implementation on 17 June. Samuel requested eBay
to “delay” implementation of the second stage until the ACCC makes
its final decision.
proposal on 21 May 2008. This requires that all sellers on eBay
must offer PayPal as one of their accepted payment methods. The
second stage which would require all transactions be paid via
PayPal was due for implementation on 17 June. Samuel requested eBay
to “delay” implementation of the second stage until the ACCC makes
its final decision.
Paymate’s MD for payments Dilip Rao welcomed
the ACCC’s stance, but warned: “It’s not over by a long shot,
though. eBay still has many options, including toughing it out and
daring anyone to take them on in court. I hope sense will prevail
and eBay will embrace the open market principles of its
founders.”
the ACCC’s stance, but warned: “It’s not over by a long shot,
though. eBay still has many options, including toughing it out and
daring anyone to take them on in court. I hope sense will prevail
and eBay will embrace the open market principles of its
founders.”
