PayPal's Online merchant terms may be declared illegal in Germany

15:03 - 11.11.2026


November 11, Fineko/abcnews. Germany's Federal Cartel Office (Bundeskartellamt) stated on Wednesday that PayPal’s rules prohibiting online merchants from imposing extra fees on customers using its payment service may restrict market competition and breach national antitrust laws. Regulators contend that the policy prevents alternative and cheaper payment methods from gaining traction.

Under current market practices, PayPal restricts merchants from passing on transaction processing costs to consumers or offering discounts for less expensive payment channels. The antitrust watchdog has formally notified PayPal to adjust its merchant terms or face potential administrative enforcement actions.

In response, PayPal stated that its pricing policies are designed to maintain consumer protection and transparency, adding that it continues to work closely with German authorities.