PayPal file releases more details with ebay split agreement

On February 27, on February 26, PayPal released more details of the PayPal and ebay split agreement in a paper submitted to the Securities and Exchange Commission (SEC) on Wednesday.

Ebay and PayPal will be split into two separate listed companies in the future. However, under the two-Party operating agreement, ebay must continue to provide PayPal payment services on its platform, while two companies are not allowed to compete with each other. The main operating agreement between the two parties is valid for 5 years and can then be renewed by the year.

Under this agreement, PayPal will provide payment processing and credit services to the Ebay.com website and ebaymarketplaces users. But the deal does not cover ebay's other assets, such as StubHub, ebay Enterprise, Magento, classifieds, ebaymotors, Shopping.com, Gmarket, Half.com, and Ebaylocal. ebay may already be planning to sell these assets, and the company has announced that it will somehow spin off the ebay Enterprise.

The operating agreement requires PayPal's service price for ebay merchants to be the same as the price for the same merchant. "Therefore, PayPal for ebay merchant prices will be similar to the current price." ”

It is clear that PayPal is concerned that ebay may take a similar approach to other online markets, such as Etsy, where buyers pay the market and the market then settles with the sellers. As a result, the operating agreement prohibits ebay from defining itself as a single merchant.

But there are exceptions to these restrictions, that is, when PayPal is "bought by some other company". These companies are not identified in the Wednesday document, but it is certain that such companies include ebay's rivals.

In addition, the agreement prohibits ebay from competing with PayPal. "In addition to certain exceptions, ebay and its controlled entities are prohibited from promoting, distributing, or selling proprietary payment solutions in direct and indirect ways on ebay-covered assets, while PayPal and its controlled entities are prohibited from promoting, distributing, or selling proprietary marketing services in direct or indirect ways. "(Weifeng)