Overview
- The Bundeskartellamt issued a preliminary legal assessment on Wednesday, November 11, 2026, saying PayPal’s contractual ban on merchants charging payment‑method surcharges may violate German cartel law.
- The authority says the clause, in place since 2018, stops merchants from showing cost differences to customers and can blunt competition by shielding PayPal from price pressure.
- The regulator found that PayPal often charges merchants higher fees than other methods and that larger merchants sometimes negotiate different rates, which may amplify the competitive harm.
- PayPal rejects the Bundeskartellamt’s preliminary view and has been given the chance to submit a formal response before the authority can order behavioral remedies or seek to recover any economic advantage.
- If the probe finds a violation after review, possible outcomes include binding changes to PayPal’s contract terms and financial recovery of profits tied to the breach, a step that could affect merchants’ costs and consumer prices.