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eBay couldn’t force its Australian sellers to use its wholly-owned PayPal payment service, but that’s not stopping them from trying the same trick in the US.
I wrote about this previously, though I didn’t mention that eBay gave up in face of such clear opposition — the 700+ submitters and the ACCC, that is, not me! However Lauren Weinstein writes that in the US eBay has announced that PayPal (or credit cards) are to be the required mechanism for all transactions.
[This was me in Crikey yesterday.]
Thank the gods I don’t work for the ACCC! The poor sods have to read 700+ public submissions on eBay Australia’s plan to force sellers to use PayPal — which they own. As Crikey reported, this could breach the “third line forcing” provisions of the Trade Practices Act.
Being a lazy geek rather than a tireless public servant, though, I can skim for juicy tidbits. They reveal a widespread fear of eBay bullying.
When the Australian Competition and Consumer Commission (ACCC) decided to investigate eBay Australia’s plan to force its sellers to use PayPal for their “protection”, there were more than 700 public submissions. eBay has responded by dismissing the objections.
I’ve written about this at length previously, both here and in Crikey [1, 2], with plenty of interesting comments from readers. And I’ve just written a piece for Crikey today, to be published around 2pm Sydney time.
Meanwhile, you can read some overview pieces at Auction Bytes and The Sheet. And you can see eBay’s full 15-page response at the ACCC website: it’s the second submission on the page, from “Applicant”.
To make things just that little bit more interesting, yesterday Telstra’s Sensis division announced a free auction site at Trading Post.
[Update 1250pm: The story will now run in Crikey tomorrow (Thursday). Busy news day, apparently.]
Given what I’ve written about eBay Australia and PayPal recently, is it hypocritical to have added a “donate” button to my website which works through PayPal? I don’t think so. After all, I did say that for small businesses setting up online, PayPal is “often the most cost-effective way to accept credit card payments, and the easiest to set up technically”. And it is. I got that “donate” button set up in 10 minutes. The gripe was about eBay forcing its sellers to use PayPal, which they own. What do you think?
If you don’t follow the comments feed, you’re missing a lengthy discussion evolving from my piece about eBay forcing sellers to use PayPal. Maybe they took my admonition to fight amongst yourselves yesterday a little too literally.
eBay Australia isn’t exactly making friends by requiring its sellers to use eBay-owned PayPal to receive their money. No more direct bank deposits, cheques, money orders or your own card merchant account. I’ve written about this twice for Crikey [1, 2], but today there’s more news: the Reserve Bank might weigh in against eBay.
Here’s how I first described the scenario:
Imagine that you’re Alice, proud owner of the new shoe shop at your local Westfield. Bob is buying a pair of brogues. As Bob opens his wallet, suddenly Frank Lowy appears. “There’s some terrible con-men around,” he intones gravely. “Let me handle that.” He grabs Bob’s cash and pockets a fiver. “I’ll give you the rest next Wednesday,” he says, and disappears.
Alice, understandably, is mightily pissed off.
Sellers on eBay have been mightily pissed off overnight too, because the world’s biggest online marketplace has just pulled the same stunt. From 21 May, all eBay sellers must offer PayPal as a payment method. And from 17 June — unless the buyer is physically collecting the item from you or for a few big-ticket categories like real estate and motor vehicles — they must pay you via PayPal.
Now as Alex Willemyns pointed out, Alice could just set up shop elsewhere. Bob could choose another shoe store. However since Westfield and eBay both dominate their respective markets, that could well be a poorer choice.
No, there is no technical error. I really haven’t posted anything since Monday. Been otherwise occupied. I intend to fix that this afternoon with a mashup of my recent Crikey pieces about eBay Australia forcing its sellers to use PayPal — which they own. Meanwhile if you’re desperate for your daily dose of Stilgherrian, you could always follow my Twitter feed.
Anti-competitive behaviour news story of the day: With a few minor exceptions, eBay will require all payments to be made via PayPal — which they own. I’ve just written a piece for Crikey, which will appear around 2pm Sydney time which is now online.
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