PayPal CMA inquiry is set to face a second-stage phase
PayPal CMA inquiry is set to face a second-stage phase by a competition watchdog, Competition and Markets Authority (CMA) after failing to address the audit’s concerns on the imbalance of prices and quality of services.
The online payments supplier have put a sharper focus this week on their business activities by failing to address CMA’s scrutiny on the potential UK competition inefficiency of iZettle’s mobile point of sale offering. Paypal CMA inquiry will now see out an in-depth Phase two investigation by the watchdog’s independent panel members including Martin Coleman, Kirstin Baker and Susan Hankey.
The watchdog are holding their breath on releasing further details on the inquiry, which set to give their final decision on the case on 21st of May 2019. The investigation will most likely to look into whether the $2.2bn (£1.73bn) merger deal could potentially bring disadvantages to omnichannel market’s payment methods by delivering lower quality services for higher prices.
Theses news come as The European Central Bank (ECB) has introduced an instant Euro payment system aimed at competing with the likes of PayPal. The launch is focusing on tackling the scarcity of major European players in the payments market. The ECB is designed to make instant payments seamless and are encouraging all banks and payment providers to join their network.