The Contest and Markets Authority (CMA) said Paypal had refused to offer suggestions to address its concerns on how the bargain, Paypal’s greatest , could damage competition and may lead to higher costs for clients, or even worse quality of service.
The regulator had also flagged concerns surrounding rivalry in the emerging market for”omni-channel” payment solutions as a consequence of the merger.
Paypal’s purchase of iZettle, which will allow the US payments processor to expand into the retail payment terminals firm in international markets, closed in September.
The deadline for a last decision on the issue is May 21, 2019, the CMA said.
Paypal was not immediately available for a remark. US markets are closed to indicate former President George HW Bush’s death.
Founded in 2010, iZettle is one of the largest fintech startups to emerge from Europe, and one of a string of successful venture-backed businesses to emerge from Sweden in the last decade or more.