SAN JOSE, CA — eBay has delayed for a second time implementation of a controversial “PayPal only” payment policy in Australia after clashing with the Australian Competition and Consumer Commission over potentially “anti-competitive effects” of the move.The change, originally scheduled for June 17th, would have forced all users of eBay’s Australian auction site to use eBay subsidiary PayPal for purchases, ostensibly to increase the security of transactions. Australia was rumored to be a test bed for worldwide implementation of the new policy. After public outcry, the change was postponed until July 15th to allow regulators additional time to examine the proposed policy.
Now the new policy has been delayed indefinitely, according to a letter sent to eBay customers. The letter noted eBay will wait for a final ruling from the ACCC — which is similar to the U.S. Federal Trade Commission — before making any changes.
“Changes to eBay.com.au scheduled for 15 July are being postponed until the review process with the Australian Competition and Consumer Commission (ACCC) regarding its recent draft notice is complete,” the letter stated. “As previously announced, eBay.com.au is continuing to work with the ACCC to achieve an outcome that benefits buyers and sellers.”
The policy change has been criticized not only as anti-competitive, but also because it is viewed as a way for eBay to boost sagging revenues by collecting twice for each transaction: once when a seller lists and item and again when a buyer wins it, in the form of a percentage of the sales price collected as PayPal fees.
PayPal charges a fee of between 1.1- and 2.4-percent per payment.
eBay may have backed away from requiring all Australian customers to use PayPal to complete transactions, but the company’s Australian policy of requiring all buyers to accept the online payment service remains in force.
“Changes that came into effect on 21 May 2008, requiring all sellers to offer PayPal, will remain,” according to the letter the company sent to customers. “Payment methods that are currently permitted will continue to be allowed on eBay.com.au until further notice.”
