Home Business News PayPal fined £250,000 by competition watchdog

PayPal fined £250,000 by competition watchdog

by LLB Reporter
24th Sep 19 3:39 pm

The Competition and Markets Authority (CMA) has fined PayPal £250,000 for failing to keep iZettle separate in the UK.

The US online payments giant PayPal acquired Sweden’s iZettle in 2018 for £1.7bn.

The CMA cleared the merger in June this year however, they found the PayPal did not comply with various requirements during the investigation.

PayPal was granted permission to integrate with iZettle outside the UK. The watchdog claimed that the online payment company undertook cross selling campaigns in France and Germany which involved some 76 UK potential customers.

The 16 potential customers had an online and offline presence in the UK. The CMA said they fear  that, “significantly more UK potential customers were contacted given the total number of customers contacted.”

In the penalty notice the CMA said, “The CMA finds that PayPal has no reasonable excuse for its failure to comply with the Initial Enforcement Order (IEO).

“The CMA has carefully considered all submissions made by PayPal but does not consider that the explanations provided for its actions amount to a reasonable excuse.

“Moreover, the failure was not caused by a significant and genuinely unforeseeable or unusual event.

“Nor was it caused by an event beyond the control of PayPal.”

A PayPal spokeswoman said, “While we respectfully disagree with the CMA’s conclusions, we understand the importance of IEOs in the UK’s merger control regime and treated compliance with the IEO with the utmost importance throughout the merger review.

“The CMA has confirmed that the alleged infractions that led to this fine were not intentional and did not have any impact in practice, and they were remediated as soon as the CMA raised concerns.

“While we are disappointed with this outcome, PayPal takes compliance seriously and has learned from this process.”

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