In a great example of how to win friends and influence people eBay Australia is moving ahead with the rort to force all Australian eBay transactions via their PayPal service.
My way or the highway, says eBay [1]
Fran Foo | June 18, 2008 [The Australian]
EBAY Australia has fired off a strongly worded letter to its 5 million customers, warning that failure to comply with its new PayPal ruling will result in an immediate removal of product listings.
This is the strongest sign yet that nothing will stop plans to make PayPal, an eBay subsidiary, the only electronic payment mechanism available on the auction website.
Members received the email late yesterday, with a firm statement that come July 15, PayPal and cash on delivery will be the only payment modes on eBay’s website.
“As previously communicated, any listings that do not comply with eBay’s Accepted Payments Policy will be removed,” eBay said. (…)
This is despite the ACCC making a reasonably strong comment on the matter;
“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,” ACCC Chairman, Mr Graeme Samuel, said today. [2]
In the ASIC submission to the ACCC, it is listed that PayPal was the only payment service in Australia that refused to sign the Electronic Funds Transfer Code of Conduct. So much for safer financial transactions!
EBay said the ACCC’s decision “undermines online consumer protection,” but at the same time, the company fully admits it wouldn’t try anything like that in the U.S. — possibly because of regulatory concerns, but more likely because it wants to avoid lawsuits from competitors and customers.
“In the US, we are not mulling, planning, or otherwise seriously considering a move to PayPal-only. There are US market-specific reasons why PayPal-only is something we simply cannot do in the US,” said spokesman Usher Lieberman in a blog post. [3]
The death-knell prepares to ring, and I’m hitting the highway.
[1] My way or the highway, says eBay (2008-Jun-18 ) [The Australian]
[2] ACCC proposes to revoke immunity for eBay’s PayPal only policy (2008-Jun-12) [ACCC]
[3] Amazon, EBay Test Legal Waters Overseas (2008-Jun-17) [Wired]