PayPal slams 'obscene' e-books

MSNBC reports.

PayPal threatened e-book publisher and distributor Smashwords, saying it would limit the company's PayPal account unless Smashwords removed from its Web site e-books "containing themes of rape, incest, bestiality and underage subjects".

Digital rights group, the Electronic Frontier Foundation (EFF), has taken up the cause of Smashwords, in tandem with the Association of American Publishers, the Authors Guild and other groups, The Wall Street Journal writes.

In addition to Smashwords, the EFF says PayPal has issued similar warnings to publishers and booksellers including BookStrand.com. The group argues that PayPal "is holding free speech hostage”.

The decision has nothing to do with PayPal's personal views on the content or any desire to limit rights to free speech, according to its director of communications, Anuj Nayar, Computerworld says.

"It has everything to do with running a sound business and complying with our legal responsibilities," Nayar adds.

An important factor in PayPal's decision not to allow its payment service to be used to purchase this material is that this category of e-books often includes images, Nayar notes.

A number of online publishers and booksellers have received the ultimatum from PayPal.