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eBay's PayPal push hits a competition hurdle ONLINE auction site eBay has failed in its bid to force it customers to use PayPal - a company it owns - to pay for items on the website. Last night the ACCC said it proposed to revoke eBay's application to enforce the use of PayPal for all transactions, saying it was a threat to competition. "The ACCC is concerned eBay (would) use its market power to substantially lessen competition," ACCC chairman Graeme Samuel said. US-based eBay estimates it has about five million Australian users and contributes $2.6 billion to the domestic economy. The online auction site announced in April that from June 17 it would no longer allow direct deposits, money orders or personal cheques as payment options. The controversial change would have left buyers and sellers with two options: cash-on-delivery or payment via the online commerce website PayPal. The management of eBay said the changes were aimed at improving transaction security.

Contributed by yahoo.com on June 18, 2008, at 1:28 PM UTC.

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