U.S. Clears EBay’s Purchase of PayPal

EBay Inc.’s $1.5-billion purchase of online payment service PayPal Inc. was cleared by antitrust regulators, eliminating a potential barrier to the transaction.

The Justice Department ended its review without asking for more information, said EBay, the largest Internet auctioneer.

On Nasdaq, shares of Mountain View, Calif.-based PayPal rose $2.10, or 10%, to $23.10 and EBay fell $1.45 to $60.41.

PayPal’s competitors include a smaller service operated by EBay.

PayPal, which lets users make payments electronically from banks and credit cards, estimated last year that 71% of EBay auctions listed PayPal as a payment option. That compared with 25% listing EBay’s rival service.

The acquisition, announced July 8, needs approval by PayPal stockholders and regulators, EBay said.