- Polish regulator UOKiK has started proceedings against PayPal Holdings, Inc PYPL over prohibited contractual provisions, Reuters reports.
- The possible fine could amount to 10% of the company's revenue.
- The regulator doubts the payments company's right to impose contractual penalties, like blocking access to accounts, financial sanctions, or terminating contracts.
- Also Read: PayPal Enables Secure Login Via Cryptographic Key Pairs
- UOKiK said that PayPal described prohibited activities that could incur penalties in an unclear way, and users may not understand precisely what was not allowed and what action the company could take in such cases.
- "Agreements, and especially those parts of them that define the negative consequences of prohibited activities, must be written in simple and comprehensible, but at the same time precise language and based on clearly defined criteria," the head of UOKiK, Tomasz Chrostny, said.
- PayPal reported third-quarter revenue of $6.85 billion, up 11% year-over-year. The total revenue beat a Street estimate of $6.82 billion.
- The company reported earnings per share of $1.08 in the third quarter, beating a Street estimate of 96 cents per share.
- Price Action: PYPL shares traded higher by 0.45% at $80.27 on the last check Wednesday.
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