The German antitrust authority is looking into PayPal because it might hinder competitors and limit price competition.
According to the Federal Cartel Office, if customers opt to pay with a method that is less expensive than the US giant, merchants are not permitted to offer their goods and services at a lower price. The regulator cites studies claiming that PayPal is not only the most popular online payment method in Germany but also one of the priciest options.
The standard rate for the business is 2.49%-2.99% of the payment amount plus 34-39 cents per payment. These clauses might limit competition and violate the law’s prohibition on abusing a dominant position, according to Andreas Mundt, president of the FCO.