One point that makes this important for me: this is not a random guy with a questionable business trying to smear paypal, as far as I can tell, these are the real developers of LittleSnitch, a well known, established development team in the EU.
Paypal is also registered as a bank in the EU (in Luxembourg), and as such is liable as a bank for such things. I just don't think someone bothered to take them to court over it.