eBay denied permission to force PayPal usage

This is a great day for Australian Internet users. As previously reported on this site, eBay has been trying to force Australian users to use PayPal or Cash on Delevery (CoD) for all transactions completed on eBay. The ACCC has released a Draft Notice regarding eBays application for exemption of the Trade Practices Act.

In a nutshell, the ACCC says "No. No excemption for you!".

In the final findings, the ACCC says: For the reasons identified above the ACCC considers that the notified conduct has the purpose, effect or likely effect of substantially lessening competition and the benefits do not outweigh the detriments.
Accordingly, the ACCC proposes to issue a notice to revoke notification N93365 lodged by eBay International A.G. on 11 April 2008.

As this means it would be illegal to force users to use Paypal for all eBay transactions, it is safe to say that eBay will now be re-thinking it's position on this for the rest of the world.

The following documents are available from the ACCC: Draft Notice Letter to eBay regarding decision


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