EBay is sued over PayPal
Published April 6th, 2007
EBay Inc., the world’s largest online auctioneer, was sued by a customer claiming it violates antitrust laws by steering buyers and sellers to use its PayPal unit for payments.
Michael Malone of Collin County, Texas, sued eBay in federal court in San Jose, Calif., claiming the company engages in “illegal tie-in and steering practices” that lead customers to pay above-market fees for transactions. Malone, who said he sold a pair of stereo speakers for $200 on eBay in 2005, was charged a $5 processing fee by PayPal to complete the sale.
