a separation accompanied by a non-competition agreement

The SEC, the American Financial Markets Authority, recently received a document from Ebay setting out the terms of its separation from PayPal. The payment service, property of Ebay will soon take off for a separate route.

paypal_logoAnd the tensions between the two entities are no longer really topical, conciliation having finally taken precedence over animosity. Ebay thus indicates that it has signed a non-competition agreement for a period of 5 years.

The agreement thus implies that eBay should not create its own payment system to supplant or simply compete with Paypal on the market.

For its part, PayPal agrees not to create its own online business site, whether it is a private individual, auction or more traditional online commerce site.

In addition, eBay should continue to support Paypal financially by paying compensation to it if the subsidiary does not reach a certain revenue threshold. The separation does not yet have a specific date, but it should take place during the second half of this year.