Australia's antitrust regulator has signaled it will block eBay Inc. from forcing all its users there to make payments through the online system operated by its PayPal Inc.
The Australian Competition and Consumer Commission issued a draft notice last week saying it planned to reject eBay's payment proposal, which was set to go into effect June 17.
"The ACCC is concerned that the notified conduct will allow eBay to use its market power in the supply of online marketplaces to substantially lessen competition in the market in which PayPal operates," said Graeme Samuel, the commission's chairman.
On Friday, eBay said it was considering the regulator's comments before deciding its next move.
Australia is the first country where the San Jose company implemented the PayPal-only system. (Often eBay tests major changes in certain markets before taking them worldwide.)
The payment proposal angered some users, who said PayPal's is more costly than bank transfers.
Acknowledging one of eBay's main arguments for the change, Mr. Samuel said the proposal had "the potential to deliver some benefits to users, such as increased buyer protection insurance in certain circumstances."
Nevertheless, the commission believes "consumers are in the best position to decide which payment method is most suitable for them," he said.
