The Competition and Markets Authority (CMA) said Paypal had refused to supply proposals to deal with its concerns on how the deal, Paypal’s biggest , could damage competition and could result in higher costs for clients, or worse quality of support.
The regulator had flagged concerns surrounding competition in the emerging market for”omni-channel” payment services as a consequence of the merger.
Paypal’s acquisition of iZettle, that would allow the US payments chip to expand to the retail payment terminals firm in international markets, closed in September.
The deadline for a final decision on the issue is May 21, 2019, the CMA said.
Paypal was not immediately available for a comment. US markets are closed to indicate former President George HW Bush’s passing.
Founded in 2010, iZettle is one of the most significant fintech startups to emerge from Europe, and among a string of successful venture-backed businesses to emerge from Sweden in the last ten years or more.