PayPal Notches Win in Anti-Steering Suit on Market Power Claims

PayPal Holdings Inc. prevailed in a case accusing the payment platform of enforcing anticompetitive agreements with merchants that prevent them from steering consumers to lower-cost options, after a federal judge said the plaintiffs’ market-power claims were insufficient.

Judge Jeffrey S. White of the US District Court for the Northern District of California in a Wednesday order granted PayPal’s motion to dismiss the Sherman Act lawsuit, ruling that the plaintiffs didn’t demonstrate that the company had “market power,” defined as the ability to increase prices above the competitive level.

“Plaintiffs allege PayPal’s power to impose the Anti-Steering Rules stems from its ...