November 13, 2026, 9:15 am | Read time: 2 minutes
The Federal Cartel Office is reviewing certain business terms of PayPal. The agency fears that the rules could hinder competition and indirectly affect customers who do not even use the payment service.
Why the Cartel Office is Reviewing PayPal
Since 2023, the Federal Cartel Office has been examining the terms of use of PayPal. The focus is on a requirement for online retailers: Those who offer PayPal as a payment method may not charge their customers an additional fee for its use.
According to the preliminary assessment of the competition authorities, this rule could violate antitrust law. The key issue is the cost for retailers. According to the Federal Cartel Office, the fees for PayPal are sometimes significantly higher than for other payment methods. However, due to PayPal’s requirements, retailers cannot directly pass these differences on to their customers.
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Why Non-PayPal Users Could Also Be Affected
According to the Cartel Office, this could have consequences for all customers of an online shop. If a retailer cannot specifically account for higher PayPal costs in PayPal payments, they may instead be reflected in the general sales prices. This means that, theoretically, consumers who use a different payment method would also contribute to these costs.
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At the same time, cheaper payment services might find it harder to leverage their cost advantage. This could impair competition among providers. PayPal’s market significance is particularly large: According to its own information, the company has 35 million active customer accounts in Germany.
PayPal Rejects the Assessment
The procedure is not yet concluded. PayPal has the opportunity to respond to the agency’s preliminary assessment. A spokesperson told the dpa: “PayPal does not share the Federal Cartel Office’s preliminary assessment.” The company intends to continue to engage constructively in the process.
There are already alternatives to PayPal, including Klarna and Apple Pay. Additionally, Wero, a European payment service, is also trying to establish itself. However, it is still significantly less known in Germany. The decisive factor for PayPal and online retailers will now be the final outcome of the Federal Cartel Office’s investigation.