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Abstract

EBay currently dominates the online auction market with a market share exceeding 90% in several prominent European countries. Until recently, eBay sellers were permitted to accept a wide array of payment options from buyers including wire transfers, money orders, and checks, as well as credit card payments through PayPal and other merchant accounts. However, pursuant to eBay's paperless payment policy enacted on November 11, 2008, sellers may no longer accept personal checks, cashier's checks, money orders, or wire transfers except in limited circumstances. In response to that policy as well as other alleged anticompetitive acts, a class action consolidated lawsuit has been filed against eBay and PayPal whereby the complaint alleged that "eBay is a monopolist in the online auction market and has abused, and continues to abuse, its market dominance to maintain and increase its monopolist profits." This comment argues that eBay possesses monopolistic power in the online auction marketplace due to both its control of a predominate market share and the existence of trade barriers and has abused that market power by engaging in a variety of anticompetitive activities in violation of current antitrust laws. In the end, this comment concludes that some level of intervention into eBay's current business practices such as injunctive relief is necessary to prevent further harm to competition in the online auction market and person-to-person online payment systems market.

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