[LINK] RFS: 'Watchdog to rule on eBay bid'

[Roger Clarke]

[RFS = Request for Submissions

["eBay has written to the Australian Competition and Consumer 
Commission asking for immunity from legal action under the Trade 
Practices Act [for forcing its users to use PayPal].
"A spokesman for the ACCC said the regulator would invite public 
submissions on its website before May 2."

[Watch this space (because they may forget to notify the Link Institute:
http://www.accc.gov.au/content/index.phtml/itemId/2332

[Or plug this in:  feed://www.accc.gov.au/rss/ACCCNewsReleasesFeed.xml


Watchdog to rule on eBay bid
Date: April 17 2008
The Sydney Morning Herald
Asher Moses
http://www.smh.com.au/text/articles/2008/04/16/1208025283105.html

THE competition watchdog is examining whether eBay is breaching trade 
practice laws by forcing users on to PayPal.

PayPal performs payment processing for online sellers, allowing them 
to accept credit card payments and money transfers without having 
their own merchant credit card accounts.

The policy, to come into effect on June 17, will mean all items must 
be paid for using PayPal - which eBay owns - or cash on delivery or 
pick-up. Direct bank deposits, cheques and money orders will be 
barred.

The move by the auction site is limited to Australia and will hit 
sellers with extra fees because PayPal charges them between 1.1 and 
2.4 per cent.

Sellers have already begun a revolt by swamping eBay's discussion 
boards and starting a petition, which has more than 3500 signatures. 
Sellers are sceptical about eBay's claims that PayPal is far safer 
than other methods such as bank deposit, and say some buyers distrust 
PayPal.

"If consumers want the additional protection offered by using PayPal, 
they can choose to use PayPal," said Dale Clapperton, chairman of the 
lobby group Electronic Frontiers Australia. "eBay's proposed conduct 
takes away that choice and would likely prevent the emergence of 
competitors to PayPal in the online payment market."

Alastair MacGibbon, eBay's trust and safety director, said the 
announcement was designed to protect users who were four times less 
likely to have a problem on eBay if they paid using PayPal than with 
other methods.

eBay has written to the Australian Competition and Consumer 
Commission asking for immunity from legal action under the Trade 
Practices Act.

A spokesman for the ACCC said the regulator would invite public 
submissions on its website before May 2.


-- 
Roger Clarke                  http://www.anu.edu.au/people/Roger.Clarke/
			            
Xamax Consultancy Pty Ltd      78 Sidaway St, Chapman ACT 2611 AUSTRALIA
                    Tel: +61 2 6288 1472, and 6288 6916
mailto:Roger.Clarke at xamax.com.au                http://www.xamax.com.au/

Visiting Professor in Info Science & Eng  Australian National University
Visiting Professor in the eCommerce Program      University of Hong Kong
Visiting Professor in the Cyberspace Law & Policy Centre      Uni of NSW