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Data Storage Your Rights Online

PayPal Dumped Cloud Company After It Refused To Monitor Customers' Files (fortune.com) 126

German Dropbox rival Seafile claims PayPal dropped it as a customer after it refused to comply with the payment services company's demand to spy on its users' data. In a blog post, the company informed its customers that they can no longer pay for the service using PayPal -- the only payment method that Seafile currently relies on. CEO Silja Jackson told Fortune, "We're looking into alternative payment services, but currently we're running a cloud service and not getting paid." Founded in 2009, Seafile has over 250,000 users, many in universities. The service offers an open-source file-synchronization system that organizations can install on their own servers -- for a fee, if they want enterprise features -- and last October the firm decided to also start offering a paid version that's hosted on Seafile's German servers, for individuals and small businesses.
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PayPal Dumped Cloud Company After It Refused To Monitor Customers' Files

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  • So... (Score:5, Informative)

    by 93 Escort Wagon ( 326346 ) on Tuesday June 21, 2016 @02:44PM (#52360973)

    Nothing of substance has changed at PayPal since the old days. Check.

    • by Anonymous Coward

      True, but I just assume my cloud storage is being monitored.

      • by Troed ( 102527 )

        I run my own Seafile instance, on encrypted disks. All communication between my clients and the server is encrypted. All the storage is encrypted.

        Why?

        Because I also assume, in a post-Snowden world, that all my communication is monitored.

    • Re:So... (Score:4, Informative)

      by NatasRevol ( 731260 ) on Tuesday June 21, 2016 @03:04PM (#52361137) Journal

      http://paypalsucks.com/ [paypalsucks.com]

    • but this is a good thing. paypal gets bad publicity, seafile gets exposure (and new customers). the more public this gets, the better.

    • by frovingslosh ( 582462 ) on Tuesday June 21, 2016 @04:05PM (#52361649)

      Wow, Paypal might not have changed much, but maybe Slashdot is starting to change. I've been modded down in the past for suggesting that Paypal and the electronic bay of thieves were evil, apparently by people who like to use them and don't want to consider the moral implications. Now it comes out that Paypal, a private company, is trying to get access to files that I store on a German server (obviously I don't really, since I absolutely will never use Paypal), based on nothing more than the account was paid for through Paypal.

      I'm shocked! Shocked that Slashdot users might finally be waking up to some of the abuses of this company!

      • by Anonymous Coward

        Funny you should mention that. Back in the day (this is at least 13 years ago now) I lost mod privs because I would mod up posts like yours that pointed out what piece of shit scum Paypal was. The same thing happened to people who dared show support for climate skepticism, or anybody seeking to expose the evil of the scientology cult.

        The mod system here is too centrally controlled and deeply flawed. Always has been and probably always will be.

    • Maybe you should read TFA before making statements like this. PayPal thought that this service was facilitating illegal file sharing, similar to MegaUpload, and that violates PayPal's ToS. Seafile is a pretty small company, since they don't have alot of people using the service that can vouch for it, if they can't provide evidence that the service ISN'T being used for illegal file sharing, I can't necessarily blame PayPal for cutting them off. To be clear, I don't blame Seafile for taking the stance they ha
      • ...PayPal thought that this service was facilitating illegal file sharing, similar to MegaUpload, and that violates PayPal's ToS... I just understand why PayPal did what they did...

        I understand that PayPal did what they did because they're hypocritical shits with hypocritical ToS, and they shouldn't be given even a hair's width of slack when they pull stunts like this. They regularly steal money from their clients, and the last time I checked that was illegal. I know PayPal enjoys the power and immunity that seem to apply so universally to banksters, but that's no excuse for them to also be such assholes about holding others to a standard which they clearly refuse to apply to themsel

  • All that sausage and the germans still have a low tolerance for this kind of shit.

  • by The Last Gunslinger ( 827632 ) on Tuesday June 21, 2016 @02:51PM (#52361029)
    All the strong-arm authoritarianism, none of the democratic illusions of choice!
  • Hawking radiation (Score:5, Informative)

    by epine ( 68316 ) on Tuesday June 21, 2016 @02:51PM (#52361031)

    Paypal officially fell into a black hole as viewed from my frame of reference a year ago.

    PayPal Will Be Able To Robo-Text/Call Users With No Opt-out Starting July 1 [slashdot.org]

    Most of the changes unexciting, but one provision has consumer rights groups up in arms: PayPal is granting itself the ability to use automated systems to call and text users. These robocalls could happen for something as serious as debt collection or as frivolous as advertisements. What's more, the company grants the same rights to its affiliates. Activists are questioning the legality of these changes.

    All this shit they still do at this point amounts to Hawking radiation.

    • by Mashiki ( 184564 )

      Illegal in Canada under CASL. Can't wait for them to start doing it to me so I can sue them.

  • by OverlordQ ( 264228 ) on Tuesday June 21, 2016 @02:51PM (#52361039) Journal

    If your sole payment method was PayPal, I'm not sure I trust you with my data.

    • by mlts ( 1038732 )

      I have used them as a credit card merchant ("Paypal Here" scanner), and I've had decent luck with them over the years. I have read horror stories left and right, but maybe I'm just lucky, but I wind up using them quite often for paying on commissions.

      Next to BitCoin, they are definitely one of the easiest ways to get cash to someone.

    • by Britz ( 170620 )

      The software is open source. The client offers client side encryption. Thus you don't have to trust them at all. You can simply turn on encryption and check the source if said encryption is secure enough for your needs.

    • Funny or not: can you suggest a viable alternative? I'm personally very interested as well.

      I'm running a small local tour company (not in the USA, by the way) and a few years ago I built a system to allow people to book tickets to my tours through my web site. Payment options are local bank transfer and PayPal/credit card. Many people here don't have a PayPal account but most do have a credit card, so I get many payments by credit card. It works fine, fees are at about 4.5% (so 3% for the credit card compan

  • I thought Safe Harbor was overturned by the EU specifically to prevent this type of abuse.. and now we have Privacy Shield coming [specifics tbd] to which I would think Paypal must also adhere. They clearly intend no such adherence.
    • by MoFoQ ( 584566 )
      Of course, seafile guys will need $ to litigate (unless they can get a state sponsor) If only they would diversify their payment options. bitcoin, their own via stripe/square, google wallet, etc. shoot, square even has their money sending service: cash(dot)me Or perhaps Swedish Klarna which appears to also service Germany.
    • by allo ( 1728082 )

      privacy shield does not mean anything. It's like "usa says they won't do evil, but they reserved the right to do so". That's why the eu activists want to stop it (and keep at the current "data should not leave safe countries" policy, which is just covered by the normal laws regarding privacy in the eu).

  • Others (Score:5, Interesting)

    by The Raven ( 30575 ) on Tuesday June 21, 2016 @02:57PM (#52361089) Homepage

    Makes me wonder what other cloud storage providers didn't say no.

  • by bmk67 ( 971394 ) on Tuesday June 21, 2016 @03:05PM (#52361145)

    Issues with Paypal's policies aside, this is what can happen when you don't diversify your payment processing. If your one vendor dumps you, you're boned.

    It's forgivable during the startup phase, but c'mon, you've been around since 2009 and have a claimed 250K users.

    • PayPal is a bad idea even for a simplistic personal transaction. But what "organization" uses PayPal of all things? It's absurd. If they can't handle a credit card transaction then they shouldn't be an online business. I can just see someone from IT shouting over the top of the cubicle, "Hey, anyone have the PayPal password so I can renew our cloud?"

      • PayPal is much more than just peer-to-peer transactions. They offer businesses a credit card processing service called PayFlow, which is used by many large tech companies to collect customer payments. It's really not that unusual for merchants to have only one credit card processor.

  • Old News (Score:5, Informative)

    by jklovanc ( 1603149 ) on Tuesday June 21, 2016 @03:08PM (#52361163)

    Paypal has been doing this for a long time [americanbanker.com].

  • by Malenx ( 1453851 ) on Tuesday June 21, 2016 @03:18PM (#52361235)

    I initially thought the summary meant PayPal wanted access to the customer data, but the story told me they just wanted analytics showing the file sharing website was attempting to combat copyright infringement.

    I still side with seafile, but that's not nearly as douchey as I interpreted the summary.

    • by mlts ( 1038732 )

      I wonder what the "analytics" mean. Would this be a scan of all the user data and handing over names, sizes, and file hashes of files, names of files uploaded/downloaded, or something less intrusive?

    • by EvilSS ( 557649 )
      The reason for this is that they keep getting pulled into copyright lawsuits directed at other companies for contributing by allowing payments (apparently it has become the payment company's job to police the sites that use their services now). It's CYA.
  • ...people still use PayPal?!? Who knew? Or cared? Them and Ebay, they're like the rummage sell of the Internet. (...Caveat emptor)
    • You probably use PayPal even when you don't know you are using it. PayPal isn't just about peer to peer transactions. They also offer businesses credit card clearing services through PayFlow. Customers don't need a PayPal account to use it, and they don't even know they are using PayPal. They're a lot bigger than you think.

  • - needs a shrink or detox, probably busloads of people all over the planet!

    Ever heard of
    "Hypercapitalism and Digitization,
    the total exploitation of humans...."

    Milking and classifying every human for profit.

    Acxiom - https://en.wikipedia.org/wiki/... [wikipedia.org]

    PayPal's philosophy is big part of that religion..

  • Recently so many people are taking spying/data collection to a whole new level including the dreaded MS. And the government benefits so they won't add policies to control them themselves unless there is a big public stink.It's unfortunate that Snowden's effort didn't get more public reaction. It's nice to see some companies trying to do the right thing. Be nice to use them to keep others in the industry honest. what about GoogleWallet or Authorize.net?
  • Government Left Hand: You damned well better make sure you are not knowingly an illegal file sharing service!

    Government Right Hand: You damned well better not be spying on your customers' stuff!

    What porn is it when someone takes it from both ends simultaneously?

  • Wait, is this the same PayPal that is owned by EBay, the company that has for years refused to do anything about the selling of copyright infringing software through their site, instead offering an "official" complaint system which is just completely ignored, and continues to do nothing about it to this day? Are they afraid of a little competition?

  • by Anonymous Coward

    The time has come.

  • And, it looks like alternatives might be SofortÃoeberweisung or Giropay, but they apparently don't interact with Deutsche Bank, which seems the only German bank allowing retail USA customers. However, Deutsche Postbank owns BHF (USA) Holdings Inc. since 2001. Perhaps they could use this to provide some retail customers access to these payment services. It's a sure bet that Paypal could use some competition.
  • As a German company, it should be very easy for them to handle payments by all European customers as standard SEPA bank transfers. The commission should be lower, and the money arrives the next day at the latest.
  • “In our role as a global payments provider we must look at the full details of a service’s operations and compliance, including how the company addresses the laws and regulations related to the sharing or dissemination of illegal content as well as the policies of PayPal’s processing banks and card networks,” it said.

    My emphasis. Paypal do not say who's laws they are enforcing, I suspect that they are talking about the laws of the USA; they are not interested that their (Paypal's) cu

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