eBay refuse be drawn at ACCC conference

June 30, 2008

Simon Smith, MD of eBay Australia, refused to be drawn into arguments at today’s ACCC conference held to discuss PayPal only on eBay.com.au. Sellers argued that PayPal isn’t safer than other payment methods and that “It is the Australian way to support having choices”

Whilst sellers were more than happy to air their opinions, Smith read a prepared statement and declined to enter into the heated discussion. I’m guessing that was in all likelihood a stipulation made by eBay’s legal team, who may still decide to challenge an adverse ACCC decision in the courts.

Reports say that only sellers voiced opinions at the conference, and it appears that Google had nothing to say in person following the revelation that Google authored an anonymous submission to the ACCC.

Written by Chris Dawson · Filed Under News | 4 Comments 

eBay.com.au indefinitely postpone PayPal only

June 26, 2008

eBay Australia have for the second time delayed implementation of the PayPal only policy, but this time a little more permanently

On the 21st May Australian users became obliged to offer PayPal on all listings, and it was planned that eBay Australia would go PayPal only on the 17th June. This was then delayed until July 15th but now pending the outcome of the ACCC decision PayPal only on eBay Australia has been postponed indefinitely.

eBay apologise to users for the change saying it “regrets any ongoing uncertainty that this further delay may cause” and that “eBay appreciates the feedback received from the Community and will use this input to consider where we can make improvements that benefit both buyers and sellers.”

In what sounds like a sea change they also say they are “committed to improving safety and we will continue to look for ways to improve the shopping experience for buyers which will subsequently benefit both sellers and eBay”

This looks like a smart move by eBay, rather than again push the date back in the face of a probably negative decision by the ACCC, cancelling PayPal only plans for eBay Australia now will avoid being forced to if the ACCC decision is against them. If they do have a surprise win they can easily resurrect the policy.

It’s time to move on, and to look at new ways to increase security on the site. A great improvement would be to introduce new checkout features like the ability for merchants to offer alternative payments in the checkout flow enabling eBay to verify that the buyer has paid. That’s one change that would definitely appeal to sellers who have been calling for choice.

Written by Chris Dawson · Filed Under Featured, Paypal | 14 Comments 

eBay to argue case for PayPal at ACCC conference

June 25, 2008

It looks like eBay may argue the case for implementing PayPal only on eBay in Australia in public, at a conference to be held on Monday 30th June at the Maritime Museum in Darling Harbour, Sydney.

Advance warning to interested parties was sent out via email (opens in .pdf) on Monday this week, and according to Auctionbytes it is to go ahead.

eBay or any interested party could call the conference, so there is no guarantee that they will show up, although it would appear on the face of it unlikely that they wouldn’t want representation. eBay have already stated that they would “work with the ACCC and hopes to achieve a final outcome which has the safety and security of eBay’s members as its paramount objective“.

Currently eBay have delayed implementation of a PayPal only policy in Australia until 15th July (it was scheduled to go live on the 17th June), and the conference could prove the last chance they have to argue their case.

Submissions to the ACCC have been steadily pouring in throughout the whole of June, and currently there is nothing to suggest that eBay will win this battle.

Written by Chris Dawson · Filed Under News | 2 Comments 

PayPal only: eBay vow to fight ACCC draft ruling

June 13, 2008

eBay Australia have issued a press release challenging the ACCC draft notice and vowing to fight on.

They have delayed implementation of the PayPal only policy until 15th July, it was scheduled to go live on the 17th June. The increase in Buyer Protection raising the cover to AU$20,000 will still come into effect on the 17th June for Australian buyers who pay via PayPal.

Whether eBay will succeed is anyone’s guess, but it’s looking increasingly unlikely. The ACCC note that over 600 eBay users, half of them buyers, sent in submissions opposing PayPal only and they themselves have “serious competition concerns” if they allowed an exception.

eBay say they hope to “work with the ACCC and hopes to achieve a final outcome which has the safety and security of eBay’s members as its paramount objective” and that they believe “the consumer benefits of this initiative are worth fighting for”.

Written by Chris Dawson · Filed Under Paypal, eBay.com.au | 8 Comments 

PayPal only: Australia says no (for now)

June 12, 2008

The ACCC have requested that eBay delay implementation of the PayPal only policy scheduled to start on June 17th.

In a draft notice issued today the ACCC proposed revoking immunity for eBay’s PayPal only policy on the grounds that it will reduce competition and that they believe “consumers are in the best position to decide which payment method is most suitable for them”.

Noting the benefits that PayPal offer they say the advantages do not outweigh the anti-competitive effect.

Whilst this is a draft notice the ACCC notes eBay have already implemented the policy that PayPal has to be offered, but have asked them to delay making PayPal the only acceptable payment method until the final decision.

Now the draft proposal is published all interested parties can make further submissions so eBay will doubtless respond. It’ll be interesting to see if Google make further waves now that their role has been revealed.

It looks as if eBay Australia users can continue offering and using alternate payment methods, at least in the short term.

eBay must have been pretty certain that they would be granted immunity and allowed to implement the PayPal only policy. Regardless of the outcome it is likely to have an effect in other territories around the world and shape eBay / PayPal policy for some time to come.

Written by Chris Dawson · Filed Under Featured, Paypal, eBay.com.au | 8 Comments 

eBay responds to ACCC re PayPal only policy

May 26, 2008

eBay has made a response to the ACCC (Opens in PDF), regarding their move to compulsory PayPal for eBay Australia transactions. The response makes three main points

1) PayPal only on eBay will not significantly reduce competition in online payments as payments on eBay do not comprise a significant proportion of all online payments and PayPal’s membership base will not increase significantly by making it complusory on eBay. They point out that “eBay buyers and sellers who do not wish to pay PayPal fees are able to avoid doing so by listing and purchasing items through competing services”. An additional point is that buyers still have choice of which underlying payment method to use such as bank transfer, debit card, credit card or PayPal balance.

They quote Oztion’s report that their membership has risen 22% since the PayPal announcement, saying “there is evidence to suggest that a number of sellers will choose alternative sales platforms in response to the implementation of the Project, providing a strong incentive for eBay to maintain a competitive offering”.

2) eBay state that use of PayPal will actually increase protection to users. They say “PayPal users automatically obtain the benefits of the security and protection mechanisms offered through those [credit/debit card, Bank funded] payment methods plus the additional layer of security and protection benefits offered by PayPal.”

eBay also highlight that even their main competitors acknowledge “that the information-sharing between eBay and PayPal gives PayPal an advantage in reversing fraudulent transacfions..” as justification for insisiting on PayPal only.

(3) eBay reject a number of claims made in submissions, such as PayPal is not the largest and longest established online payment provider, PayPal will not become a monopoly for eBay payments, it will merely be an intermediary to process transactions made via other payment institutions, and that they don’t discriminate against high-volume and/or low-margin sellers as they offer micropayments and volume discounts.

eBay’s submission suggests that PayPal will not become an online payment monopoly, and that buyers and sellers have choices of venues to buy and sell on. They insist that payments via PayPal not only offer additional security to alternatives, but enable eBay to protect buyers and sellers from problematic transactions through monitoring buyer and seller behaviour.

In conclusion eBay said changes would not be substantially lessening competition, and in any event, any lessening of competition would be clearly outweighed by the significant public benefits that would be likely to result from it.

The big question is will the ACCC grant eBay’s request to go PayPal only, and if so how long will it be before the policy migrates to other countries around the eBay world?

Written by Chris Dawson · Filed Under Paypal | 9 Comments