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PayPal Bans Major File-Hosting Services

Discussion in 'Filehost Discussion' started by ardo, Jul 11, 2012.

  1. ardo

    ardo Member

    In recent weeks, PayPal has cut off many of the world’s largest filehosting sites from its service including MediaFire, Putlocker and DepositFiles.

    In recent months, PayPal has stopped working with these and dozens of other file-hosting services, citing piracy concerns.

    To be accepted by PayPal, file-hosting services now have to comply with a list of far-reaching demands entirely targeted at copyright-infringing and otherwise illegal files.

    Just how far PayPal is prepared to go is explained by Putlocker. The UK-based company had its PayPal account frozen three months ago after it refused to allow the payment provider to snoop on files uploaded by its users.

    “They basically wanted access to the backend to monitor all the files being uploaded, and listing all files of users if they wanted, regardless of the privacy setting that the user might have selected,” Putlocker told TorrentFreak.

    "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 3rd party company has any business snooping on our users,” the company added.

    MediaFire says it stopped accepting PayPal after the company was unable to reach an agreement with the payment provider.

    “PayPal started a discussion with us in February regarding continued use of its service. Ultimately, we were not able to agree on how to move forward and, as such, stopped accepting new customers through PayPal in early June,” Mediafire co-founder Tom Langridge told TorrentFreak.

    “I think it’s fair to say that because of PayPal’s business model, it got burned by the sudden shutdown of Megaupload,” Langridge says