Germany takes legal action against PayPal

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Germany takes legal action against PayPal

BERLIN Reuters - Germany's cartel office regulator said on Monday it had initiated legal proceedings against payment company PayPal Europe over the possibility of it hindering competition.

The watchdog said that the proceedings were based on the rules for extra charges and the presentation of PayPal in the terms of use for Germany. PayPal didn't reply to a request for comment.

The regulators are looking into rules that say merchants may not offer their goods and services at a lower price to customers who choose a cheaper payment method than PayPal.

According to the antitrust watchdog, PayPal demands that sellers do not express a preference for other payment methods or make their use more convenient for customers.

According to Andreas Mundt, cartel office chief Andreas Mundt, said these clauses could restrict competition and constitute a violation of the prohibition of abuse.

We will examine what market power PayPal has and what extent online merchants depend on it as a payment method. The internet companies are closely watched by the watchdog to make sure there is fair competition.

Changes to Germany's antitrust laws for digital corporations, which came into effect in 2021, give the cartel office more power in identifying and prohibiting some companies' dominant positions.

The authority has previously initiated actions against Amazon and Facebook.