how would one do that from within the EU? Is it still sending a certified letter to Omaha?
Legal claims fall under the Luxembourgish laws. I'm not seeing any language in the Dutch terms of service that mention any arbitrage.
Another thing to note is that the European branch of PayPal actually has a banking license. The Dutch national bank lists the permits (though the registration was done in Luxembourg, obviously): https://www.dnb.nl/en/public-register/information-detail/?re...
It looks like the 2007 basic banking license was extended around 2018.
In the EU paypal is deemed a bank I believe thus must abide by the same rules as regular ones. That's not the case in US.