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ARTICLE · 16 MAY 2008

Why Shouldn´t Ebay Be Able To Require Parties To Use Paypal?

The Competition Law Project
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eBay International (<strong>eBay</strong>) has indicated to the Australia Competition and Consumer Commission (<strong>ACCC</strong>) that it wants to require buyers and sellers on the eBay system to use one or other of the following payment systems.

AustraliaAntitrust/Competition Law
Martin Algie
Martin Algie

eBay International (eBay) has indicated to the Australia Competition and Consumer Commission (ACCC) that it wants to require buyers and sellers on the eBay system to use one or other of the following payment systems:

(a) cash on delivery/pick up; or

(b) PayPal.

Currently, buyers and sellers have the option of using any one of a number of payment methods.

eBay's proposal clearly raises issues under the third line forcing provisions of the Trade Practice Act (TPA). It is for that reason that eBay has lodged a Notification with the ACCC, seeking dispensation on the basis that the benefit of this requirement outweighs its detriment. Third line forcing includes the practice of supplying goods or services, where the customer is obliged to purchase further goods or services from a third party. eBay's proposal certainly raises third line forcing issues, indeed on both sides of

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