PayPal Joins London Police Effort
derGoldstein writes this excerpt from Ars Technica: "PayPal has joined a music copyright association and the City of London police department's bid to financially starve websites deemed 'illegal.' When presented with sufficient evidence of unlicensed downloading from a site, the United Kingdom's PayPal branch 'will require the retailer to submit proof of licensing for the music offered by the retailer,' said the International Federation of the Phonographic Industry's latest press release." The press release can be found here.
Move to the EU. The behaviour you describe is almost certainly illegal under EU competition law, and eBay UK does not have this restriction:
(http://pages.ebay.co.uk/help/policies/accepted-payments-policy.html)