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Court could beckon for eBay case

Date Published : Wednesday, June 25, 2008

Internet auction site eBay could be set for a court date with the competition regulator over the website's limitation of payment methods for Australian consumers, according to reports.

The Sydney Morning Herald states the site introduced a new policy this week that means users can only pay for their goods using the PayPal service, which eBay owns.

The move comes despite a warning from the Australian Competition and Consumer Commission (ACCC) that the policy denies buyers a choice and weakens competition in the online payments sector.

However, eBay has apparently signalled its intent to press ahead with the policy, sending an email to its Australian users informing them of the change and warning that their listing will be removed if it does not conform, the newspaper adds.

An ACCC spokesman would not comment directly on eBay's move, but he told the publication that the website and other "interested parties" would have until July 3rd to submit their comments on online payments competition before the commission issues its final ruling.

However, a competition lawyer said eBay's approach could leave the ACCC with little option but to square off with the auction site in court.

"If the commission's final decision doesn't change because eBay has not been able to put on further evidence to change their mind and, if eBay continues with the conduct, then it is very difficult for the commission not to go after them in court proceedings to stop the conduct," he said.

PayPal allows users to accept credit card payments and money transfers without opening their own merchant credit card account.

Founded in 1995, eBay has grown to become the world's largest online marketplace, with users from 27 different countries selling goods on the site.

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