DETROIT, June 23 (UPI) -- Ebay is fighting a default judgment entered in a class-action lawsuit brought in Detroit over its rule that payments must be made through PayPal.
The online auction service filed a motion Friday asking a federal court in Detroit to set aside the judgment and give it a 14-day extension of time to respond. In court papers, eBay lawyers said the company had been involved in negotiations over the issue and was not aware the plaintiffs were filing for a judgment, The Detroit News reported.
The lawsuit says eBay is violating federal antitrust laws by requiring all payments to be made with PayPal. Ebay bought PayPal in 2002.
"When you sell something on eBay, you pay them a percentage; then PayPal gets their cut," said Peter Macuga, a lawyer involved in the case. "EBay won't even let sellers accept cash, checks or any other method. What eBay is doing is the very reason the Sherman Anti-Trust Act was passed."
Macuga said the company had been notified by registered letter of the filing of the lawsuit and had 30 days to respond.
