Oct 5 (Reuters) - Payments giant PayPal (PYPL.O) was hit with a consumer antitrust lawsuit on Thursday in San Jose, California, federal court for allegedly fashioning agreements with e-commerce merchants that artificially maintain high transaction fees.
The lawsuit said PayPal, which owns Venmo, imposes the highest transaction fees among payment processors.
The lawsuit seeks unspecified monetary damages and an injunction against alleged anticompetitive practices.
Eliminating PayPal’s merchant restrictions would let sellers “competitively price transactions,” they said, and allow “consumers to secure discounts at checkout.”
The lawsuit said Visa and MasterCard in 2010 agreed to strike rules restricting price competition in a settlement with the U.S. Justice Department.
“With payments transitioning into the digital realm, PayPal has simply ripped a page right from the Visa and MasterCard playbook,” the lawsuit said.
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