It appears as though ebay has been denied the use of Paypal with exclusion of all other payment services, (or the PayPal only scheme) on it’s site by the Australian equivalent of the FTC, the ACCC

Here are some associated pages:
ACCC proposes to revoke immunity for eBay’s PayPal only policy
The draft document can be downloaded here (pdf)

Here are the pertinent portions:

ACCC conclusion on public benefits

5.173 The evidence available does not support the view that PayPal is the most secure method of payment, or offers the best service for all transactions.

5.174 The ACCC is of the view that consumers are in the best position to determine whether, for their particular transaction, PayPal offers the best features in terms of
security, fraud protection, dispute resolution and insurance, at the price offered.

5.177 The ACCC considers that the notified conduct has, or is likely to have, the effect of
substantially lessening competition in the market in which PayPal operates. The
ACCC also considers that the notified conduct is likely to result in reduced choice for
consumers, higher transactions costs and reduced innovation in online payment

5.178 Therefore, the ACCC concludes that the substantial anti-competitive detriments outweigh any public benefits resulting from the notified conduct.

It does not appear to me this is a done deal, but certainly very encouraging to stop this global monster.

Don’t touch those dials.