No protection for PayPal project
eBay Australia's plans to make PayPal the mandatory payment method for all buyers and sellers using its online marketplace is on the ropes. Yesterday the ACCC revoked eBay's interim immunity from prosecution under the third line forcing provisions of the Trade Practices Act, just days before the second stage of the plan was due to come into force next Tuesday."In light of the serious competition concerns raised in the draft notice and the significant concerns raised by interested parties, I have asked eBay to delay implementation of the second stage of the conduct until a final decision is made by the ACCC," ACCC chair, Graeme Samuel, said in a statement yesterday."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."The ACCC acknowledges that having PayPal as the only payment provider has the potential to deliver some benefits to users, such as increased buyer protection insurance in certain circumstances. However, the ACCC believes that consumers are in the best position to decide which payment method is most suitable for them." eBay replied by issuing a statement saying it would assess the draft ruling and respond following the review process. The final deadline for responding to the ACCC's ruling is 26 June. If the company pushes ahead with mandating PayPal only on 17 June it risks prosecution under the third line forcing provisions of the Trade Practices Act.The ACCC did not apparently object to the first part of eBay's plan requiring all eBay sellers to offer PayPal as a payment option. That requirement came into force on 21 May.