Germany’s antitrust authority, the Bundeskartellamt, has issued a preliminary finding that PayPal’s rules barring merchants from charging customers extra for using its services may restrict competition. The authority is concerned the rules could disadvantage other, potentially cheaper payment providers and push up prices for consumers as merchants spread payment costs across customers.
The finding adds regulatory pressure on PayPal in a key European market. The authority’s president said PayPal is comparatively expensive for merchants, who may feel compelled to offer it because of its popularity. The investigation reflects growing scrutiny of major digital payment platforms.
Separately, Bernstein analysts raised their price target on PayPal to $60 from $55.