SHOPPERS may get less cashback in future if a planned merger between Quidco and TopCashback gets the go ahead, the competition regulator has warned.
Currently, shoppers can often earn extra money when they buy online if they make their purchases via either of the cashback websites.
But the Competition and Markets Authority (CMA) has raised concerns that if the two companies join forces it would mean there was less competition.
This in turn would mean there was less incentive for the firms to offer competitive rates – meaning shoppers could earn less.
In a statement the CMA said: "The companies face only limited competition from other suppliers of cashback websites and similar services, including voucher websites and comparison sites.
"The CMA is therefore concerned that the merged company could decrease the amount of cashback paid to shoppers."
Quidco and TopCashback now have until January 14 to provide a solution to the CMA’s concerns.
If they can't, the merger will be referred for an in-depth investigation carried out by a group of independent CMA panel members.
Despite the setback, both firms say they're "optimistic" that the deal will be given the green light.
In a statement Quidco said: "The deal was voluntarily submitted to the CMA for review, as we want to be as diligent and compliant as possible in this process.
"While the CMA is reviewing the deal, it is business as usual for us. We are optimistic but we don’t want to speculate on the outcome at this stage."
Meanwhile, a spokesperson for TopCashback added: "While it’s a shame we didn’t get sign off today, it isn’t unexpected that we would go into phase two, especially considering the complexities of our industry.
"In terms of what this means for us now, as before, we'll continue offering the best service and deals to our members as we always have done.
"We'll also be working closely with the CMA during its continued review and while we don't want to speculate too much on the outcome, we remain optimistic.”
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We share our five top tips on how you can get cashback every time you shop.
Plus, you can currently get seven per cent cashback on several P&O Ferry routes at TopCashback.
Meanwhile, Tesco has cut the price of hundreds of products in a fresh supermarket price war.
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