EBay Abandons Plans For PayPal Monopoly
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A while back, EBay announced that they were going to switch to a system that would ONLY accept Paypal for payment. They then started to implement this in Australia to kinda try out the idea and find out how users businesses and the government would feel about it.
Well, they found out all right. There was an almost violent reaction from sellers, who didn’t want to be locked into a paypal only situation because of the fees that paypal charges them for each transaction.
Then the Australian Competition and Consumer Commission got into the act and held a conference in Sydney to decide if they were going to allow this new policy. Just when it looked like the ACCC was going to nuke the idea, EBay backed down and decided not to go ahead with the plan.
Of course, they didn’t back quite all the way down. Apparently since then, regardless of what other payment options the seller want’s, paypal is now always offered as a payment option.
I think it’s interesting that they decided to try this in Australia instead of the US. I can’t help but wonder what would have happened if they had? Would they have been allowed to get away with it?
By the way, don’t forget that ebay bought paypal a few years ago.
Technorati Tags: online payments, payments, paypal, auctions, auction payment, monopoly, ebay
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