PayPal

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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."

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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.

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PayPal's UK subsidiary has agreed to pay an extra £3.1m in tax following a review by HMRC.

Research by the BBC's Wake up to Money programme found that tax at the e-payments firm rose from £181,000 in 2016 to £4.7m.

In its newly-filed accounts, PayPal says: "HMRC has been reviewing the company's direct tax position.

"As a consequence, the company has agreed and settled its outstanding liabilities and as a result is not subject to any current enquiries."

Twitter UK has also filed accounts showing a jump in corporation tax from £815,000 in 2016 to £2.4m last year.

However, the company said this reflected an adjustment relating to previous years, rather than any involvement from HMRC.

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