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Similar issues arose in 2010, when various providers terminated their business relationships with the Wiki Leaks whistleblower site when it published secret U. Although Pay Pal was not actually sued, Wiki Leaks was recently successful in a lawsuit brought against a payment processor in Iceland.
The court’s ruling in favor of Infostream gets it one step on the way to making out a successful claim against Pay Pal.
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Infostream responded with the allegation that Pay Pal was invoking its unfairly, because the company continues to provide services to competitor sites that are similar to its own, such as Ashley Madison.com, which urges users to “have an affair,” and Arrangement Finders.com, which promotes “mutually beneficial arrangements” between men and women. Infostream had adequately alleged that obligation had been breached, the court said, if it could show that Pay Pal terminated the account in order to benefit Infostream’s competitors.
Similarly, the court found that the allegations that Pay Pal used unpublished standards “to pick winners and losers in the market” adequately alleged a claim under the California unfair competition law.
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In one case, authorities sought to charge the Craigslist site for promotion of prostitution, and sustained pressure from state attorneys general succeeded in getting the site to drop its adult services section. 28, 2012), United States District Judge Susan Illston dismissed some, but not all, of Infostream’s legal claims.
That kind of attention can be a concern not only for a dating site itself, but also for other online services that provide support to such sites, such as hosting companies and payment services. Sherman Act antitrust claims were dismissed (but with leave to file an amended complaint) because Infostream’s allegations that Pay Pal has an ownership interest in sites that compete with Infostream’s sites were deemed speculative.
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