Paypal gives Netflix an assist by cutting off VPN provider

Chris Scott Barr - Feb 5, 2016
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Paypal gives Netflix an assist by cutting off VPN provider

We know that Netflix has started blocking users from utilizing VPN connections to bypass their regional restrictions. While this is mostly a futile effort on their part, it’s most likely about appeasing studios than restricting users. But now it seems that they’re actually getting some help from an unlikely source.

Since VPN providers can easily obtain and use new IP addresses, simply blocking the IP addresses they use is a futile game of cat-and-mouse. However, what happens when those same VPN providers aren’t able to accept money from their customers? That’s an issue that at least one company is facing.

UnoTelly is a company that provides VPN and SmartDNS services to their customers. There are many reasons why a person would need to use these types of services. But since it can be used to circumvent regional restrictions on services like Netflix, Paypal has stepped in and cut them off.

Earlier this week Paypal sent UnoTelly an email stating the following: “Under the PayPal Acceptable Use Policy, PayPal may not be used to send or receive payments for items that infringe or violate any copyright, trademark, right of publicity or privacy, or any other proprietary right under the laws of any jurisdiction.”

What’s interesting here is that literally every single VPN provider can be used for this purpose. That’s simply the nature of how a VPN connection works, and Paypal is saying that they won’t conduct business with VPN providers. So far this is the first and only case that I’ve seen where Paypal has cut off a company that provides VPN services, so it’s possible that they will realize that these companies offer a legitimate service that many people use for a variety of perfectly legal reasons.

While I can’t imagine that Netflix asked Paypal to start cracking down on VPN providers, it does prove advantageous to the company. However, there are plenty of ways that a company can accept cash, besides using Paypal. Here’s hoping that Paypal changes their mind before they start cutting off more legitimate businesses.

VIA: Ars


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