July 5, 2008
EBay Blinks
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Australia. EBay has finally reached its strtegic limit. Though it is still a power in the auction/resale market its dominance has been exposed. In a case of sellers leaving and PayPal enforceemnt EBay’s fortunes have changed. They have so ticked many in their community that a small percentage may never come back. –
eBay has officially withdrawn all further plans to make its online payment system PayPal its sole acceptable payment method, but offering PayPal as one of the payment options remains a requirement and there’s no sign of the auction giant apologising for suggesting that its opponents were no better than drug addicts.
The war is now officially over. Having been told by both the regulator and its customers that plans to make PayPal compulsory were unacceptable, greedy, anti-competitive, and just plain stupid, eBay has finally thrown in the towel on plans to make PayPal the only way to pay for eBay auctions in Australia.
eBay’s statement acknowledging its backdown — something widely anticipated ever since it removed its target date for changing its current approach — contains the closest we’ll ever see to an apology for its greedy and rapacious tactics.
“eBay has withdrawn its notification to the Australian Competition and Consumer Commission (ACCC) about removing other payment methods,” it reads. “Instead eBay will continue to allow all existing payment methods on eBay.com.au. We have decided to withdraw the notification to stop any further confusion and disruption among the eBay Community. eBay regrets any uncertainty that this process has caused among the Community and believe that today’s decision will remove further doubt.”
The internet age institutes an iron maiden — Communities make industries and communities break companies. Any company that attempts to buck the lady is gone before they are buried. Ebay is no different. With both the ACCC and sellers raising hell EBay had no choice but to back down on their PayPal restrictions. But the maiden will not have it stop there. Once the ruckus has begun nothing short of near capitalization will satisfy the community.
If you are a business that operates on the internet keep one thing in mind. If you find a ‘Your Company Sucks’ web site do not discount it. Nor should you attempt a cease and desist thru your lawyers. That is just bear bait for your eventual defeat. Better to ask for a conference with the site owner and ask them what it will take to bring things to a satisfactory conclusion. Your success in that endeavor is up to your political skill.
Regardless, EBay is in the thick of it. It will take more than just a PayPal retreat to satisfy the mob.
Filed under Intellectual Property, Litigation, competition by Dr. Dog
















