eBay, who is currently under investigation for allowing the sale of counterfeit consumer electronic goods and is also under pressure from the Australian Competition and Consumer Commission, has caved in on its plan to force Australians to use only its PayPal service for making payments for auction transactions.

EBay yesterday withdrew a notification to the ACCC of its intention to remove other payment methods. “While we disagree with the ACCC’s draft notice, we have decided to withdraw the notification to stop any further confusion and disruption among the eBay community,” said eBay Australia vice-president Simon Smith.

The company said it regretted uncertainty experienced by eBay buyers while the issue was being fought out.

It’s widely believed eBay was using Australia as a trial market to test reactions for a wider introduction of the PayPal-only system. That plan now seems well and truly buried, at least for the time being.

EBay Australia says that, as a result of yesterday’s decision, direct deposits, personal cheques and money orders will be accepted ­ it did not mention credit cards, but in June it specifically permitted payments by Visa or MasterCard.

It will still seek to insist that all sellers at least offer PayPal as one of the payment options.

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