Submitted: Tuesday, Jun 17, 2008 at 19:55

Ebay's woes continue:

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Australia May Block eBay's Mandate To Use PayPal

The Australian Competition and Consumer Commission suggested that it would likely block eBay's effort to require all Australian trades to use PayPal for payments.

By W. David Gardner
InformationWeek
June 16, 2008 04:14 PM

During a week that eBay (NSDQ: EBAY) wants to celebrate with its best customers at its annual eBay Live event in Chicago, the online auction company finds itself preoccupied with challenges in two of its chief units -- online payments company PayPal.

The PayPal electronic payment platform was thrown a curve ball by the Australian Competition and Consumer Commission, which suggested in informal comments that it would likely block eBay's effort to require all Australian trades to use PayPal for payments.

The ACCC signaled that it looks upon an exclusive PayPal arrangement as anti-competitive, although it will receive comments on the issue until July 3. The move by eBay to mandate PayPal usage in Australia was interpreted by some sellers as a first step in a plan that will spread to other markets.

Reaction from Australian sellers was swift. "The longer this debate continues the worse it is for sellers, and the more it drags on the worse it's eventually going to be for eBay and its shareholders," said Australian sellers representative Phil Leahy, according to Australian media reports Monday. "The overwhelming response from sellers is for this to end now and for consumer choice to prevail."

Leahy, who is president of the Professional eBay Sellers Alliance, said eBay had raised security issues with the PayPal measure and that had given buyers "the idea that [the] Web site has some serious issues with security and trust."

EBay has argued that an exclusive use of its PayPal platform would help reduce disputes between buyers and sellers on the auction site.

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Would the ACCC try to block something that is good and wholesome, I think not!!!!!

Colin.

Tags: Manufacturers/Retailers, Business, News & Current Affairs, Shopping
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