German Antitrust Watchdog Initiates Legal Proceedings Against PayPal

According to the German antitrust agency, legal action has been taken against PayPal, a U.S. electronic payment system, on suspicion of impeding price competition.

A press release posted on the agency’s website reads, « The Federal Antitrust Authority has launched procedures against PayPal… because of suspected restriction of competition. »

The restrictions placed by the service that prevent vendors from dropping prices of items when a customer selects a payment method with lower fees will be the focus of the complaint. PayPal is also taking tough measures against vendors that want to provide their clients with similar options.

According to market research, PayPal is not only the leading payment system in Germany, but also one of the most expensive services in the country. According to PayPal’s price list, the standard commission in Germany is currently 2.49-2.99% of the payment amount plus about 40 cents per transaction.

source: dw.de

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