Pacino and Reaves
APC's crack team of lawyers -- Pacino and Reaves LLP

Five desperate tactics eBay could use to change the ACCC's mind

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Angus Kidman16 June 2008, 2:12 PM

eBay now just has 12 days to convince the ACCC it isn't an anti-competitive rorter. Our lawyers have put some tips together for their lawyers.


eBay has set a new deadline for enforcing PayPal of July 15, after the ACCC comprehensively slammed its plans to make PayPal the only payment mechanism allowed for Australian buyers. Apparently not concerned that it's already coming across as the cyberspace equivalent of a schoolyard bully, the auction giant has vowed to "continue to fight for safety benefits for consumers".

Despite the bluster, and the presentation of this change as a near-certainty, eBay will only be able to push ahead with the new date if it can convince the ACCC to change its mind, something which 80 pages of legal documents hasn't achieved so far. While we'd frankly much rather not see eBay succeed, in the spirit of fair play, here's some suggestions of tactics the company could use.

(1) Drop back a notch and make PayPal compulsory, but not exclusive. Since last year, eBay has required newly-registered users to offer PayPal as an option on listings, and this hasn't resulted in any great legal dramas as far as we know. Requiring PayPal to be available, but not requiring it to be used, would give buyers who wanted safety the option, but wouldn't get sellers' backs up half as much as the current proposal. (The fact that eBay hasn't pursued this option suggests that despite its protestations, it's quite keen on collecting all that extra fee revenue from PayPal.)

(2) Propose something even more outrageous. A useful diversion: when Ben Elton, Rik Mayall and Lise Mayer were writing the classic TV sitcom The Young Ones, they would often put in deliberately offensive material that they knew BBC management would never approve — thereby distracting the producer's attention from the equally offensive but more subtle material they did want to retain.

eBay could learn from this. While it's hard to think of a scheme even more ridiculous than banning all other payment methods, there are a few possibilities. eBay could propose that only Safari could be used for accessing the site (Apple being a fan of compulsory downloads and all), or that only bid amounts ending in an uneven number of cents were allowed.

(3) Convince Google to play nice. One of the more amusing side distractions of this whole sorry saga has been the revelation that a submission opposing the proposal which had the senders' name blanked for privacy purposes actually came from Google. Though the odds are low, if eBay could convince Google to change its minds and back the proposal, that might carry some weight. (The fact that the ACCC has pursued other legal action against Google is beside the point in this context, we hope.)

(4) Use the Chewbacca defense. As any South Park fan will tell you, the Chewbacca defense involves deliberately confusing the jury with an insane Star Wars argument about Wookies and Ewoks, ending with the lines: "If Chewbacca lives on Endor, you must acquit!" At this stage, it has to be worth considering.

(5) Come up with a more convincing argument than "it will make the world safer". We don't actually expect to see this happening, but outside of option (1), it remains the only real chance of success for eBay. Good luck, guys. Break a leg.


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William151515 (User):

hahahahahahahahaha Chewbacca defense that has to be the funniest thing i have heard all day XD

16 June 2008, 3:33 PM (1 year ago)report abuse Send to a friend reply

Sick of eBay (User):

Whats the difference the whole issue is about double dipping with ebay receiving double the fees, if they dont get the ACCC on side they will make us sellers suffer elsewhere, they are money hungry corporate people who will walk over whoever it takes to make more money.
There is nothing left there for sellers anymore, the margins are gone due to fee's there is no customer support at all.They run a ridiculous independant meeting last week fronted by a couple of sellers and have the cheek to charge people for information that should be given for free, Dont know who is more of a disgrace ebay or the sellers who tried to line their own pockets also.
Try bang4bucks sellers and buyers, support is all that is needed to make a private owned company survive and take away a percentage of ebays profits.
bang4bucks is now the only private owned properly run auction site in Australia.

ebay is going to get worse and worse till they self destruct

16 June 2008, 3:34 PM (1 year ago)report abuse Send to a friend reply

ellen_morrow80@hotmail.com (New user):

Problems are that only a third of the people that actually use EBAY are aware they are able to make a stand , and many are the mum of one parent families who would not touch Paypal at any cost, seeing as they can just withdraw fund paid at a loss to the buyer without any consideration. Ebayers should use the site within ebay and see what is possible for them to accomplish - go to --Home > Community > Discussion Boards > The Round Table e.g.Sales have droped by at least 75% ..Howdy all!!!
Has anyone had a drama with the sales dropping by more than half?, cos mine have,,, my window decals, are not a highly demanded item, but i was making a good bit of pocket money, and now.... well its sooo slow, its at the point were its a waste of time pulling out all the paints to paint just one or two items,, i use to spend a whole day here and there painting them.I'm realy worried as i have a shop full of window decals, i pay my fees useing paypal, and my monthly fees are well over the $250.00 mark,, what happens if i dont make that much a month any more? thats how bad my sales have gotten,,, my only option is to cut down whats instore, or close up shop. its realy peed me off, cos i love painting these....This has been a concern for many sellers, my sales drop off by at least 50% for several weeks, but luckily they have now picked up again. Selling on Ebay is like a seesaw up one minute down the next. hang in there, patience is the key to success on ebay, you never know when a customer will come in to buy. But I do understand your concern, when the sales dont match the monthly fees, its time to reassess the situation ....Yep, my sales are way way down compared to ususal. Buyers are just too unsure with all this "unrest" eBay have created!
I also reckon there's heaps of buyers, especially newbies, who just don't want to use Paypal. Some people don't understand it, nor want to give such details online! People want to have a choice! No wonder our sales are down!
PLUS... my unpaid items are up by 50%! That's the effect of these stinking feedback changes for you too!! No-ones in a hurry to pay anymore anyway!
WHAT HAVE YOU DONE EBAY???????? ARE YOU BLIND????...The little icon on my toolbar starts flashing to say I have mail. I go into my email to find that it is only yet another heap of 'your item has not sold' emails. 8 dropped into unsold today (with more to come), it is just so depressing.
Just as well this isn't the only place I list on...



16 June 2008, 3:48 PM (1 year ago)report abuse Send to a friend reply

realitycheck (New user):

Nice article, but I have to tell you that your option 1 is going nowhere. eBay has ALREADY made PayPal compulsory on the Australian site as phase 1 of The Project as eBay puts it.

16 June 2008, 4:03 PM (1 year ago)report abuse Send to a friend reply

realitycheck (New user):

Compulsory PayPal is already required in Australia.
http://www2.ebay.com/aw/au/200805.shtml#2008-04-10105658

16 June 2008, 4:06 PM (1 year ago)report abuse Send to a friend reply

Tin (Senior Forumologist):

Whoa. What happened to my friends paragraph and punctuation?
They certainly aren't visiting people who reply to this article.

16 June 2008, 6:01 PM (1 year ago)report abuse Send to a friend reply

Pialba_laptops (New user):

good on you eBay. I support you if no one else does,as Ive been riped off by sellers not offering PayPal. Only Direct Deposits. Try getting a refund from the direct deposit !!!!
As A buyer Im sick and tyred of not being able to use PayPal and as my last ripoff was for quite a few hundred dollars I now refuse to buy anything without "PayPal" as payment.

16 June 2008, 6:10 PM (1 year ago)report abuse Send to a friend reply

Aubrey (Advanced member):

I know this goes against against the general tone of "shock-horror" hereabouts, but I really can't see why everyone is so up in arms about this whole issue. Ebay is not a sole supplier and has no ability to close out competition in their own sector (as shown by all the replies that urge people to use other auction sites), so how can compulsory, exclusive PayPal be anti-competitive? Certainly not for the on-line auction industry where competitors stand to gain considerably.

The ACCC finding is that ebay's tactics would reduce competition IN THE AUSTRALIAN FINANCIAL INDUSTRY. Come on! That's surely a joke. When did ebay become a major player?

I think the ACCC is barking up the wrong (very small) tree here. Why don't they look at MS - only the Europeans seem to have the guts to tackle that particular anti-competitive giant.

BTW, I hold no candle for ebay - I left months ago (as a buyer). It is dying a slow death anyway IMO.

16 June 2008, 9:40 PM (1 year ago)report abuse Send to a friend reply

Tin (Senior Forumologist):

It's a fine line really. OK, eBay isn't a monopoly. But on the other hand, the other's are like comparing plankton to a whale.

I personally haven't sold anything on eBay, but I really can see the point the sellers are making... It's not safe to sell if they are forced to use PayPal. Scamming buyers can all to easily pull the money back after receiving the goods. PayPal is worse for fraud than credit cards (as eBay's own figures prove).

16 June 2008, 9:51 PM (1 year ago)report abuse Send to a friend reply

charlie (User):

http://seekingalpha.com/article/81353-a-stockholder-and-merchant-loses-confidence-in-ebay?source=feed

AND, U.S. listings are now often padded with overseas listings in many (underlined) categories in order to flesh out (LOL) dwindling merchandise numbers. (Like we're too stupid to figure THAT out!)

I haven't bought anything off ebay in 6 months.

P.S. And then there's iOffer's listing count, which is about to hit 4.5 MILLION listings, and ebay (the giant's?) dwindling to 13.5 million. That's SERIOUS competition. Serious.

(We won't even factor in Amazon and all the new sellers coming on board there.)

And the growth of their other entities? ebay doesn't have a clue what ethics is about. Paypal is dishonost, and evidently now Skype is hitting with bogus charges...

Does this company even know what integrity means?


17 June 2008, 6:58 AM (1 year ago)report abuse Send to a friend reply

charlie (User):

Perhaps this is what going on , using Paypal to get rid of all the little people of this world !!!!!

eBay Inc Announces Plan To Open Site To Third Party Developers
- This move will give developers unprecedented access to eBay's community of professional sellers, creating more opportunities for developers to market their tools and giving sellers a wider variety of sales optimization applications.
- By giving developers the opportunity to showcase their tools to eBay's most active sellers, eBay aims to help developers and sellers alike create new revenue streams and maximize their ability to make money through eBay. .
- External applications built using eBay Web Services already account for more than 28% of all eBay.com listings


17 June 2008, 7:17 AM (1 year ago)report abuse Send to a friend reply

charlie (User):


eBay Announces Plan to Open Site to Third Party Developers

CHICAGO--(BUSINESS WIRE)--

eBay Inc. (Nasdaq: EBAY) (www.ebay.com) today unveiled plans to allow third parties to integrate applications directly onto the world's largest ecommerce site. This move will give developers unprecedented access to eBay's community of professional sellers, creating more opportunities for developers to market their tools and giving sellers a wider variety of sales optimization applications. eBay shared this news for its community of 70,000 developers at the seventh annual eBay Developers Conference in Chicago.

Today's decision to open the site marks the first time eBay has invited developers to submit seller tools for inclusion directly onto eBay Selling Manager, an online tool for managing and tracking listings on eBay. More than 700,000 professional eBay sellers subscribe to Selling Manager, which until now has consisted entirely of applications developed in-house at eBay. By giving developers the opportunity to showcase their tools to eBay's most active sellers, eBay aims to help developers and sellers alike create new revenue streams and maximize their ability to make money through eBay.



http://www.streetinsider.com/Press+Releases/eBay+Announces+Plan+to+Open+Site+to+Third+Party+Developers/3745515.html

17 June 2008, 7:45 AM (1 year ago)report abuse Send to a friend reply

charlie (User):

http://seekingalpha.com/article/81538-could-ebay-be-a-microsoft-takeover-target

Microsoft (MSFT) has $44 billion or so burning a hole in its pocket, but there’s one little hitch: There are few companies that the software giant could buy to get scale quickly. Enter eBay (EBAY). Enter speculation. Enter eBay as the acquisition target.

Sure, eBay has opened up its platform to third party developers. And eBay even opened up PayPal too. The eBay announcement gave me a headache–I hit my head on the keyboard after falling asleep reading the statement (Techmeme).


17 June 2008, 8:06 AM (1 year ago)report abuse Send to a friend reply

daveconmedia (New user):

PayPal as compulsory should not and never be allowed. One main reason for me to despise it is the week or so it takes to clear a PayPal transaction. Not really profiteering from the money market whilst they have your funds are they?

17 June 2008, 10:01 AM (1 year ago)report abuse Send to a friend reply

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