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Commenting on the CMA's investigation into the proposed $2.2bn merger between US payments company PayPal and Swedish start-up iZettle, Mike Cherry of the Federation of Small Businesses said: “The CMA is absolutely right to scrutinise this potential acquisition on behalf of smaller businesses.
"It’s vital that – if completed – the merger doesn’t lead to even higher prices for card processing services or stifle much-needed innovation."
The competition watchdog has raised concerns about the $2.2bn merger between US payments company PayPal and Swedish start-up iZettle.
The Competitions and Markets Authority said the tie-up could push up prices and reduce the range of services on offer to customers.
It warned: "PayPal could face insufficient competition in the UK after acquiring its market-leading rival."
It said that the merger will be referred for an in-depth Phase 2 investigation, to be carried out by a group of independent CMA panel members, if the two firms don't address the concerns.