Sydney  - The Australian affiliate of internet auctioneer eBay announced Saturday it would postpone the implementation of its controversial PayPal- or cash-only policy, pending the outcome of an inquiry by the country's consumer watchdog.

The Australian Competition and Consumer Commission (ACCC) ordered a delay in the introduction of the policy, citing an "anti- competitive effect" as it would force people to pay either cash on delivery or pick-up, or via the eBay-owned PayPal system.

The policy was deemed anti-comptitive because it seeks to prevent credit cards or cheques being used for direct settlement.

US-based eBay stressed it was delaying rather than scrapping the ruling, which effectively obliges customers to pay twice for each transaction.

The auctioneer argues that PayPal gives buyers and sellers the best protection from fraudsters.

The PayPal-only plan is an initiative of eBay's Australian offshoot but could have spread to other affiliates if successful. (dpa)