Tag archives: eBay

eBay Bans Google Checkout

According to a recent article from auctionBytes,

eBay is banning sellers from requesting payment through Google Checkout. The online auction giant updated its Safe Payments policy this week to add Google’s new payment service, Google Checkout to its list of online payment methods not permitted on eBay.

From eBay’s standpoint, eBay is probably fulfilling a duty to maximize their shareholder’s wealth. Blocking Google seems to be a logical step to ensure marketplace dominance. So, why shouldn’t eBay be allowed to block Google?

The answer is simple: eBay’s unchecked control hurts consumers. Instead of making the auction experience better for the online community, eBay is only looking out for eBay. Instead of embracing choice and welcoming competition, eBay seeks absolute power. Here’s a reality check, eBay: You can’t quash Google. More importantly, depriving consumers of meaningful choice only plants seeds of backlash.

But, eBay probably enjoys their absolute control over the auction experience. Right now, eBay capriciously suspends users’ auction accounts and PayPal accounts without any explanation. With a marketplace competitor, eBay would actually need to provide real customer service and develop equitable business policies. But, why compete when you can just ban anyone in your path?

Smaller online payment processors, such as StormPay, have been unable to raise sufficient capital to challenge eBay’s monopolistic tactics. Google, who’s motto has always been Do No Evil, will hopefully step up to the plate and put eBay in its place. If such a day does arrive, it will truly be a victory for the consumer.