EFA opposes eBay-PayPal exclusive dealing

EFA today lodged a submission with the Australian Competition and Consumer Commission (ACCC), opposing a recently announced plan by online auction site eBay to require all Australian buyers and sellers to use PayPal for eBay purchases in most circumstances.

Many eBay buyers and sellers have very valid reasons for preferring not to use PayPal.  Their choice of payment method should not be overridden by eBay in the name of commercial expediency or increased profits.

EFA believes that eBay’s proposed changes are without any substantive public benefits, and that any public benefits that may result would be outweighed by the harm to competition and consumers resulting from the changes.  EFA further believes that eBay’s proposed changes may constitute a misuse of market power, contrary to s 46(1) of the Trade Practices Act 1974.