Britain’s competition watchdog said on Wednesday the Paypal Holdings’s $2.2 billion takeover of Swedish financial technology startup iZettle would be referred for an in-depth review.
The Competition and Markets Authority (CMA) stated Paypal had refused to supply proposals to address its concerns on how the deal, Paypal’s greatest , could damage competition and may result in higher costs for clients, or even worse quality of support.
The regulator had flagged concerns surrounding rivalry from the emerging market for”omni-channel” payment services as a consequence of the merger.
Paypal’s acquisition of iZettle, which will allow the US payments chip to expand to the retail payment terminals firm in global markets, closed in September.
The deadline for a final decision on the matter is May 21, 2019, the CMA said.
Paypal was not immediately available for a comment. US markets are closed to mark former President George HW Bush’s passing.
Launched in 2010, iZettle is one of the most significant fintech startups to emerge from Europe, and one of a series of successful venture-backed companies to emerge from Sweden in the past ten years or more.