Payment service PayPal has joined the fight against piracy and has stopped working with many of the largest file-sharing sites.  PayPal has introduced a set of specific requirements for filesharing services in their user terms and conditions. Nowadays, file-sharing services must comply with this list of requirements regarding the storage and transfer of content in order to be eligible to use PayPal. This new policy by PayPal has caused controversy among filesharing companies, as they fear some of the requirements let the search for infringing content prevail over the privacy of end users. For example, file-sharing services must provide PayPal with free access to their service, so PayPal's Acceptable Use Policy department can monitor the content that is transferred through the service.. 

Obviously, file-sharing sites are not happy with PayPal's new policy. "This is a complete invasion of privacy on PayPal's part, as it's none of their business what files users keep in their account. We have a solid abuse handling policy already, and we don't feel a third party company has any business snooping on our users." says Putlocker.

At the same time, PayPal is defending themselves against the accusation that payment providers de facto facilitate the exchange of illegal content by organising the transactions for clandestine platforms.  PayPal froze Putlocker's payment account three months ago after the company refused to let PayPal monitor files of users.  MediaFire was also unable to reach an agreement with PayPal. According to the owner of another major file-sharing site, who prefers to remain anonymous, this has a paralyzing effect on the file-hosting industry, as 90% of the customers of file transferring sites pay through PayPal.

As a result File-sharing services have to find alternatives for PayPal. Though, chances are that other payment service providers will follow PayPal's example and will introduce a new policy for file-sharing services as well. 

Source: TorrentFreak

By: Marjolein van der Heide