ACCC plans to reject eBay's PayPal push

The Australian Competition and Consumer Commission is proposing to revoke a notification lodged by eBay.

The Australian Competition and Consumer Commission has issued a draft notice proposing to revoke a notification lodged by eBay in April, regarding its plan to lock users into paying for purchases through its fee-based PayPal service.

ACCC Chairman Graeme Samuel expressed concern the changes will allow eBay to use its massive online market share to lessen competition in the market where PayPal operates.

"PayPal currently competes with a range of other providers to supply online payment services to users of online marketplaces. If the notified conduct is allowed to go ahead, there will be no competition for the supply of such services to buyers and sellers using eBay," said Samuel, in a statement.

"Given eBay's position as Australia's leading online marketplace, the notified conduct will substantially reduce competition to supply online payment services to users of online marketplaces more generally."

Touting buyer confidence and safety as the two key reasons, eBay announced in April that as of June 17, users in Australia must use its PayPal payment service for all transactions, with the only exception for cash-on-delivery.

eBay's new policy will be implemented in two stages. Carried out on May 21, the first stage required that all items for sale must offer PayPal. Then the second stage, planned for June 17, will put an end to direct deposits, personal cheques and money orders as a payment option.

Samuel said that the ACCC acknowledged that the PayPal-only policy has the potential to increase buyer protection and safer online trading. However, the organization believes the consumers are in the best position to decide which payment methods to use.

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

The ACCC has asked eBay to delay the second stage of its plan until the ACCC has made a final decision.

eBay and interested parties now have time to lodge submissions in response to the draft notice.

An eBay spokesperson said it's currently assessing the ACCC draft notice and will make further comment following the review process.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Kathryn Edwards

Computerworld
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?