EBay delays PayPal policy

EBAY has delayed plans to force its Australian customers to use its PayPal payment service with its online auction house.

EBay Australia had planned to make it mandatory for local sellers to use PayPal or COD when listing items for sale on its online auction service from June 17. Today the company said it would delay introducing the payment policy until July 15.

The policy would forbid the use of direct deposits, personal cheques and money orders to settle trades on the site.

The statement comes a day after the competition watch dog released a draft proposal to withdraw the online auction giant's immunity from sanctions for anti-competitive behaviour under Trade Practices laws for implementing the new payment policy.

In its draft proposal, the Australian Competition and Consumer Commission (ACCC) said that the payment policy would substantially lessen competition in the online payment market.

EBay said it would work with the ACCC but said it was disappointed that the agency's "current view delays the opportunity to provide consumers a more secure way to shop on eBay.com.au with confidence."

In April, eBay applied to the ACCC for immunity from prosecution from parts of Trade Practices Act that prohibit exclusive dealing.

The ACCC proposed to withdraw that immunity and will consult with interested parties before making a decision on whether to withdraw it permanently.

EBay insists that its payment policy is designed to protect consumers from fraud but it has met with resistance from customers who have threatened to use alternative auction services if the policy goes ahead.

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