CMA: Provisionally clears PayPal / iZettle takeover

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CMA: Provisionally clears PayPal / iZettle takeover

  • Both companies provide mobile point of sale (mPOS) devices that enable businesses to take ‘offline’ payments through a card reader connected to a smartphone or tablet
  • The 2 companies are also active in the emerging market for ‘omni-channel’ payment services
  • The CMA was also concerned about the potential impact of the merger in ‘omni-channel’ payment services
  • The payments services sector is evolving and the CMA’s Phase 2 investigation, led by an independent group of panel members
  • The CMA has reviewed extensive evidence, including large volumes of the merging businesses’ internal documents, relating to PayPal’s rationale for the merger
  • The CMA also found that other significant competitors would be more important constraints on PayPal