Is Ebay and Paypal in antitrust violation?

Question

Ebay disallows it's sellers who sell in ebay's so called auction format from recovering Paypal fees or for that matter the ebay fees. The reasons ebay gives for this is that they are not a true auction, (then why is it called an auction?). It might be acceptable somewhat that the ebay fee may not be totally recoverable, as cost of advertising. However the Paypal fee should be totally recoverable. While denying it's sellers from reclaiming Paypal fees, Ebay/Paypal also disallow sellers from listing GreenZap as a payment option. GreenZap fees are flat rate fees making GreenZap a good competitive alternative to Paypal. Is Ebay/Paypal in conflict of interest or in antitrust violation? Also is this fiar, Ebay/Paypal are profiting on top of their own fees and shipping cost when payments are made via Paypal, as Paypal fees are a percentage based on the total cost which includes shipping cost and ebay's own fees thereby skimming profit off their own fee, there's probably a legal term for this.

Answer 1

Anti-trust prohibits certain anti-competitive actions taken against others in the same business activity or preventing others from entering into that type of business activity.

EBay, while large, has not used its market share to illegally prevent other on-line auction firms from expanding or opening.

Prohibiting its sellers from using an alternative to Paypal might rise to an anti-trust violation against GreenZap, but GreenZap would have to bring the action, and show that an anti-competitive motive was behind EBay's action. Or the sellers might have a cause of action under anti-trust for denying them the alternative. But again, if there is a rational reason for not allowing alternative the action would be hard to win. Especially since there are other on-line auctions that the sellers could move to that apparently allow GreenZap.

As I understand it, Paypay (or GreenZap) essentially acts as an escrow and holds the funds until the merchandise is received in good condition. The funds it holds are inclusive of EBay's fees which are paid by the seller to EBay from the seller's receipts. If Paypal has to refund money back to the buyer, it has to refund all the money the buyer sent, including that amount that would have paid to EBay by the seller. Therefore, there seems to be no violation of any law to change a fee based on the total amount Paypal is responsible for.

In short, from your description, there does not seem to be a violation of the anti-trust law. But, if you are willing to come up the million or two it would take to fight EBay, I'll come out of retirement and we can talk.

Answer 2

Contary to what particularly everyone looks to think of, you're actually not coated as much as Paypal might such as you to think of you're. basically in view which you employ Paypal doesnt mean you're immediately coated could desire to something pass incorrect. It relies upon on a load of variables eg what variety of account you have the two common, maximum excellent or organisation, if the different person has a shown handle, variety of things + a lot greater. study the info FIRST! you're meant to be coated upto £a hundred and fifty (project to circumstances, see above) or £500 if a seller is "qualified". yet certainly ninety 9% of the time you're actually not coated. that's an excert from Paypals very own words- (got here across on the "seller secure practices" website) Please observe here adverse aspects of using the PayPal provider: funds gained on your PayPal account could be reversed at a later time (in some circumstances as much as a hundred and eighty days following the time of receiving the charge) if this form of charge is project to a chargeback, reversal, declare or in any different case invalidated. this ability that for a number of our sellers, funds gained into their account could be reversed as quickly as they have been paid and after the seller has introduced any products bought. certainly in case you sell something and the customer comes to a decision to make a chargeback even upto a hundred and eighty days after the sale!, Paypal will basically hand your funds decrease back to the customer no questions asked and you've got lost your products and your funds.Paypal and ebay couldnt care much less. there is not greater volatile thank you to purchase on the information superhighway than Paypal. Unfortunatly ebay very own paypal that's why it is their prefered charge approach. they do no longer seem to be a economic business enterprise, yet are equivilent of using a decrease back street Pawn save with all the hazards that involves.

Answer 3

YOU NEED TO WATCH IT-those ebay folks don't play

Answer 4

They are in the game for making money, so everything is fair ;(