WARSAW, July 15 (Reuters) - Poland's antitrust and

consumer protection watchdog imposed a fine of 106.6 million

zlotys ($27.3 million) on PayPal Europe for failing to spell out

to consumers in its contractual clauses activities for which

they may be fined, UOKiK said on Monday.

UOKiK said that prohibited activities which could incur

penalties were described in an unclear way and users may not

understand exactly what was not allowed and what action the

company could take in such cases.

"PayPal ( PYPL ) clauses are general, ambiguous and incomprehensible.

When reading these provisions, a consumer cannot predict which

of their actions may be considered prohibited, or what sanctions

may be imposed on them by the entrepreneur," the head of UOKiK,

Tomasz Chrostny, said in a statement.

"Therefore, PayPal ( PYPL ) has an unlimited possibility to decide at

will whether the user has committed a prohibited act and what

penalty they will face for it, which may be, for example,

blocking money on the account."

PayPal ( PYPL ) was not immediately available for comment.

The decision is not final and PayPal ( PYPL ) has the possibility to

appeal to a court, UOKiK said.

($1 = 3.9055 zlotys)

(Reporting by Anna Koper and Anna Wlodarczak-Semczuk; Editing

by Emelia Sithole-Matarise)