Polish Competition Regulator Probes PayPal

Poland’s competition watchdog has launched proceedings against PayPal over the use of possibly prohibited contractual provisions that would have harmed consumers and competitors in the growing FinTech market.

Poland’s UOKiK, in charge of competition policy and other relevant regulations, says it could fine PayPal up to 10% of its turnover if it decides that there are significant problems with the payment giant’s user agreement.

The watchdog takes issue with three provisions included in the agreement: a list of prohibited activities; a list of sanctions; and a ban on using an account when it is blocked or suspended.

Read more: PayPal Pushed EU Antitrust Complaint About Apple Wallet

UOKiK’s statement on the matter said that “In the opinion of the President of the Office, the content contained in this document may be contrary to good practices and lead to gross disproportion of rights and obligations between the consumer and the entrepreneur.”

UOKiK says that prohibited activities have been described “imprecisely”, which may cause excessive legal uncertainty among users. Lack of clear definitions and descriptions on prohibited conduct could leave customers vulnerable to arbitrary sanctions, which would affect their ability to access their funds.

In a statement given to Reuters, PayPal says it “remains deeply committed to its compliance obligations” and works closely with regulators.