Fakoyejo OlalekanThe share price of PayPal Holdings Inc. fell on Monday due to criticism from Elon Musk and other social media users during the weekend over policy to fine customers $2,500.
PayPal had written in its updated policy that customers using its services to transmit misinformation, as determined by the firm, through “sending, posting, or publication” will be fined $2,500.
It was gathered that the policy was due to take effect on November 3, 2022, however, following disclosure of the fine, PayPal said it was a mistake.
This didn’t stop investors in the US stock market from reacting negatively towards PayPal on the exchange floor after the criticism, causing the share of the firm to fall -6.26%.
Prime Business Africa gathered that the dip wiped off N4.77 trillion ($6.53 billion) from PayPal’s market valuation, knocking the value of the payment company down to $97.75 billion, from the $104.28 billion it was worth on Friday.
Addressing the decision of PayPal, Musk, who co-founded the company, agreed with the former President, David Marcus, who said, “A private company now gets to decide to take your money if you say something they disagree with. Insanity.”
The company is said to be censoring customers opinion by deciding what comment is “misinformation” and which isn’t. And due to its access to customers account, PayPal is being accused of being the judge and jury by limiting users’ freedom of expression.
PayPal in its response to the criticism, said, “PayPal is not fining people for misinformation and this language was never intended to be inserted in our policy. We’re sorry for the confusion this has caused.”
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