The prospects for the acquisition of Internet-based payments company PayPal by leading online auctioneer eBay have improved, but obstacles still remain.

The $1.5 billion acquisition was announced in July. Such deals are subject to a waiting period under US law, called the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The Act is handled by the US Department of Justice, which is entitled to request additional information pertaining to mergers of this kind during the waiting period. This the DOJ has not done.

However, the companies still need to obtain PayPal shareholder approval, and fulfil certain federal regulatory requirements. PayPal is currently facing legal questions about its processing of online gambling transactions.

PayPal is also facing legal action by its shareholders trying to halt the merger.