Germany Warns PayPal Fee Rules Restrict Competition

Germany antitrust authority warns that PayPal fee prohibitions may restrict market competition. The Federal Cartel Office argues the rules reduce consumer incentives for alternative payment methods. PayPal disagrees with the preliminary findings.

Xurve View
Insights:
PayPal logo is seen in this illustration taken July 15, 2026. REUTERS/Dado Ruvic/Illustration

PAYPAL HOLDINGS INC faces antitrust scrutiny in Germany over merchant fee rules that the Federal Cartel Office said may restrict online payment competition. The preliminary finding targets prohibitions against online merchants charging customers extra fees for the service. It follows an investigation opened in 2023 into the platform's high market share and above-average fees.