DST18300 - Online Marketplace - Condition A

The first condition in the marketplace definition tests whether the online service enables users to sell particular things to other users, or to advertise or otherwise offer to other users particular things for sale. This is a relatively straightforward test which considers whether the online service provides the functionality for third party users to sell, list or otherwise offer items to other users.

While the provision looks at the user on the supply side of the marketplace, the condition will also be satisfied if the online service enables users to buy particular things from other users. In most cases the online service will provide the functionality for both but there are some business models which are focussed on enabling a buy-side user to obtain the best price for a given product or service. These demand-side marketplaces will also satisfy the first condition. This is because it is not possible to enable a user to buy something without also enabling another user to sell something.

Some of the key terms in the condition are described below.

Users

The definition of a user in section 44 clarifies that a user does not include the provider of the marketplace or any entity in the same group.

This ensures online retailers selling goods or services as a principal will not satisfy the condition.

Advertise

The reference to advertising things for sale clarifies that listings sites which allow users to post particular things for sale are capable of being covered by the marketplace definition even if the online service does not provide payment or other facilities which enable transactions to be executed on the platform.

Meaning of particular things

Thing is defined in the legislation as any services, goods or other property. This is intended to be broad and includes all types of goods, services or property.

The inclusion of particular is intended to refer to specific or individual things. Consequently, the condition will only be met if the online service provides the facility for users to sell, list or offer individual items rather than brands or generic product categories.