ACCC to look into eBay’s request for Trade Practices Act immunity
By Arnold Zafra
The Australian Competition and Consumer Commission is set to decide on whether to approve eBay’s petition for exemption to the Trade Practices Act. eBay, through its legal firm, Deacons law firm has filed an “exclusive dealing” notification with the ACCC to allow eBay to enforce a new payment policy on all transactions.
The new policy which was announced last April 10 requires eBay sellers and buyers to use PayPal for their online transactions in eBay. Likewise, starting April 17, eBay will no longer accept other forms of payments that include direct deposits, personal cheques or money orders. eBay users refusing to use PayPal can opt to pay for their transactions using cash upon delivery.
Australian IT reports that eBay filed the petition one day after it announced the new policy. Citing that the new policy will not be detrimental to fair competition, eBay asked the ACCC to grant them immunity from the Trade Practices ACT to implement the new policy.
“In any event, any detriment to the public which may be caused by a lessening of competition as a result of the policy would be outweighed by the significant public benefits that would be likely to result from the move,” Deacons partner Calum Henderson said.
eBay’s announcement of the new policy has angered many eBay users, prompting some of them to file a petition against it. Among these petitioners is Brisbane small business operator Daniel Gibney who said that the new policy is a “blatant grab for profits disguised as a security upgrade.
The ACCC is expected to post a notice on its public register announcing whether it will grant immunity to eBay this week.
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