German antitrust authority says PayPal practices may restrict competition
PYPL•Germany’s Federal Cartel Office said PayPal’s ban on online merchants charging extra fees for its payment method may hinder competition and possibly violate the law. It is also considering whether PayPal may have to hand over profits gained through the practice.
1. Preliminary antitrust finding
The Federal Cartel Office said PayPal’s prohibition on online merchants charging customers extra fees to use its payment method may hinder competition and possibly violate the law. PayPal said it disagreed with the office’s preliminary finding but would “continue to engage constructively in the proceedings.”
2. Fees and next steps
The authority, which opened an investigation in 2023, said PayPal charges above-average fees compared with other payment methods and has a very high market share. It said the ban may reduce consumers’ incentives to use other payment methods, limiting competitive pressure on PayPal’s merchant fees. The office is considering whether PayPal may have to hand over profits gained through the practice and has given the company an opportunity to comment on its preliminary findings.
