German cartel agency initiates proceedings against PayPal

Germany’s combination office controller said on Monday it had initiated proceedings against payment company PayPal Europe(PYPL.O) over the possibility that it hindered competition.

The subject of the proceedings was PayPal’s rules for redundant charges and the donation of PayPal in the terms of use for Germany, the watchdog said. PayPal didn’t incontinently reply to a request for comment.

The controller is probing in particular rules that say merchandisers may not offer their goods and services at a lower price to guests who choose a cheaper payment system than PayPal.

PayPal demands that merchandisers don’t express a preference for other payment styles or make their use more accessible for guests, according to the antitrust watchdog.

” These clauses could circumscribe competition and constitute a violation of the prohibition of abuse,” said combination office principal Andreas Mundt in a statement.

” We’ll now examine what request power PayPal has and to what extent online merchandisers are dependent on offering PayPal as a payment system.”

The watchdog is nearly watching internet companies to insure fair competition.

Changes to Germany’s antitrust laws for digital pots, which came into effect in 2021, give the combination office further power in relating and proscribing some companies’ dominant positions.