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Thu June 12 2008 08:05:08

Australia Says No to eBay's PayPal-Only Policy

By: Ina Steiner

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The Australian government told eBay it could not implement its PayPal-only policy in Australia next week and would make a final determination on the matter. It issued a 42-page draft notice today that said consumers are in the best position to determine which service offers the best features. The agency waded through submissions by eBay buyers and sellers, online payment providers, financial industry organizations and other interested parties.

Interestingly, the ACCC used the May 26 submission, believed to have been submitted by Google, to help determine the competitive landscape. The filing showed data from Hitwise that revealed eBay dominated traffic in the "Shopping and Classifieds - Auctions" sector in Australia.

The ACCC noted that the second largest online marketplace after eBay is OZtion, which "is currently not a significant competitive constraint on eBay."

The agency received over 600 submissions from eBay users and said, "The overwhelming majority of these submissions were opposed to the notified conduct and raised concerns regarding restriction of choice, increased fees and issues associated with PayPal’s security, dispute resolution and customer service."

eBay and interested parties now have time to lodge submissions in response to the draft notice, before the ACCC decides whether to issue a final notice revoking the notification.

It would be interesting if this case draws attention from government regulators in other countries over eBay's payment restrictions. eBay has implemented policlies on its other sites that push users into using PayPal, just shy of an official PayPal-only policy. There's also speculation that eBay has plans to do away with checks and money orders in the US.

More on the ACCC ruling in today's AuctionBytes Newsflash article, including a link to the full ACCC notice.




Comments (93) | Permalink

Readers Comments

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Tired

Thu Jun 12 08:25:07 2008

That is wonderful!!!  Just what eBay needs is a swift kick in the pants!!!  Since eBay is the spoiled child at the playground they just might fold up their tent and leave or just make things even worse for our Australian friends...  Let's hope it sticks!!!  Greetings from the US of A

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Karen

Thu Jun 12 08:45:05 2008

Good for the Australian court system.  Let eBay know they don't make all the rules and all the laws.

That should keep them from trying that silly stuff in the USA

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: CEP

Thu Jun 12 08:46:23 2008

Perhaps now some of our govt officials here in the US who havent been ''Lobbyed'' will take notice of how a govt really does protect it citizens from being fleeced under the guise of safety. Of course they did bring us the ''Patriot'' act sham so there may be no hope here. But lets all celebrate the victory for our fellow ebayers in Ox. Well done indeed.


Fosters all around!

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Marg

Thu Jun 12 09:14:39 2008

Regardless of what happens re PayPal a lot of Aussie sellers have moved or are moving to other sites, including me.  Unfortunately due to ebay dominating the market some will be forced to continue using eBay but will also list on other sites and as they grow reduce eBay listings.  

The anger here is not just about PayPal it is also about the Feedback changes of sellers not being able to leave Negative FB for non performing/problem buyers, the new FB rating system where Neutrals are converted to Negatives in their ratings etc. etc. And just the appalling way we are treated by eBay and its computer generated ''Help'' systems.  I even got into trouble for putting eBays mailing address and phone number on the boards.  Something that is available to 4 million people in Sydney and worldwide on the net.  Their reasoning was it was discussing ''a person''.  

We never win with all that rubbish but with the support of every major bank and financial institution in this country we look like winning this one.  Not just for us but all eBayers.  They might not be so keen to try elsewhere now.

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Richard

Thu Jun 12 09:15:28 2008

eBay wanted this to fail as they were on a dead end road to know where.

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: simply

Thu Jun 12 09:18:29 2008

Thanks for following up my early notice Ina, and you're welcome.

It is very good news for us here in Australia.............and our international ebay friends.
As they say ''It's not over 'till the fat lady sings'' (no offence to anyone!) but I think she is on her way to the stage!

Our next fight is to try and band international ebay members together to try and do something about the feedback situation. Please refer to the Australian round table forum thread titled ''OK PAYPAL IS BEHIND US, NOW HOW TO ADDRESS FEEDBACK ISSUE WORLDWIDE....''

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: farlig

Thu Jun 12 09:27:14 2008

I don't think this will have much impact. over 90% of eBay listings are already paid via PayPal, and eBay can do much more subtle things to limit other forms of payment.

The mistake they made was making such a bold move - which was bound to get shot down, and get a lot of attention. They're better when they do things more subversively.

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: GoodForOz

Thu Jun 12 09:29:15 2008

eBay is already a monopoly when it comes to online auctions. Competition is necessary to keep prices and services in check. Its already bad enough eBay is rejecting Google Checkout as a payment option. Paypal-only will be bad for consumers.

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Anthony

Thu Jun 12 09:57:47 2008

Paypal need to be told that it is mandatory to sign the Electronic Funds Transfer Code of Conduct for any institution accepting deposits making Paypal answerable to the Banking ombudsman as well to consumer affairs so no more temporary holds or frozen accounts...

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Sven

Thu Jun 12 10:09:24 2008

Lmao :}

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Kal

Thu Jun 12 10:22:31 2008

Finally eBay gets the swift kick in the A$$ it deserves. It's about time somebody stood up and said NO MORE!

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Lynn D

Thu Jun 12 10:40:28 2008

This is the best news I have heard all week!

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Steve

Thu Jun 12 11:07:34 2008

So the mighty behemoth finally get's taken down a notch.  Bravo to Australia who clearly sees this as nothing more than a cash grab.  eBay loses and trashes their brand in one single swoop.

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Aussie eBayer

Thu Jun 12 11:11:23 2008

I really dislike eBay now. They set themselves up as having all these 'community values' and somewhere along the way lost all their ethics and just became greedy tyrants. As my mother would say, they have gotten too big for their boots. It will be a sad day for the people who REALLY built the site when the inevitable day comes that this behomoth disintegrates.

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: bonni

Thu Jun 12 11:14:27 2008

"over 90% of eBay listings are already paid via PayPal"

Not in Australia, mate.

Oh, and CEP, nobody here really drinks Foster's. The stuff you have in the States is actually manufactured in Canada. We keep all the GOOD beer here. ;)

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: tj

Thu Jun 12 12:17:45 2008

Now if only the UK, European and US gov would do the same..eBay for some reason has been totally allowed to conduct business in whatever fashion they like..now time to start putting rules in place for them to obide by

Nice one OZ ...Bonni stop drinking the beer

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: GazLanNaThai

Thu Jun 12 12:20:27 2008

OK - in the short term it's good news, and eBay have a bloody nose that they will learn from.

My official prediction (log this Ina) is that in it's drive to topple Amazon from the buyer's trust top spot, eBay will itself begin selling goods through its own marketplace, allowing it at some future time to retry the PayPal-only methodology, citing Amazon Payments as its precedent.

What would eBay sell on it's own marketplace?

A number of options spring to mind -
- co-branded bundles of Microsoft operating systems with all the eBay and PayPal gizmos hard coded in.
- a huge book library of books about eBay and business techniques in general.
- branded clothing, especially casual wear.
- eBay memorabilia.

The thoughts of what they'd sell don't stop there, and in particular, there are a number of manufacturing sellers who could "hand" their output to eBay to be managed and sold by a dedicated eBay department, selling as eBay not the producer.

Also think about all the third world charity stuff eBay has been ramping up (especially through World of Good / Project Good) - imagine all that Fair Trade eco produce being sold exclusively through eBay on the site a-la-Traidcraft or Oxfam style.

The list goes on - and Donahoe's comment that this time next year we won't recognise eBay for what it is today, still haunts the imagination.

Gaz

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Henrietta

Thu Jun 12 13:09:49 2008

This is one battle in what will be a continuous process with eBay. History shows that the legal trend in the USA for the last 30 years favors the corporation over the consumer. Financial disasters like WorldCom and Enron have done nothing to change or even slow this. As long as paid lobbyists are given unconstrained access to lawmakers and the voting population acquiesces quietly to being trampled nothing will change. Not everyone can vote with their feet on eBay but we can all make noise.

Write letters to your local newspaper, comment on blogs and websites, one letter a day will make a difference.If you are silent how can you be heard?

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: Patricia

Thu Jun 12 13:56:19 2008

This is great news!  I hope the final decision is even harsher on Ebay.  I'm well aware that Australia is fighting the fight that all of us would have to take on sooner or later.  Ebay wants total dominance and total control globally.  This is one thing they must not prevail on.  I'm grateful to the Aussies for putting up a good fight because I know it needed to be done for all of us.

www.ACEOart.net

Australia Says No to eBay's PayPal-Only Policy   Australia Says No to eBay's PayPal-Only Policy

by: steve

Thu Jun 12 14:34:10 2008

Gaz says: "and Donahoe's comment that this time next year we won't recognise eBay for what it is today, still haunts the imagination"

I just can't wait to see that one get his come uppins.  He really seems to me like an arrogant piece of work.

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