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MS Excel doesn't allow to set an array formula (e.g. PALO.SUBSET, but also non-Jedox arrays) on a cell range with merged cells.
Jedox Web Spreadsheet does accept input of array formula on a range with merged cells, but the output will then - depending on the traits of the used cell range) only show part of the result.
For example, when creating array which returns for values on two horizontally merged cells in a single row (i.e. first merge d cells spans two cells, second also spans two cells), only the first and third value is shown.
Handling this like Excel (i.e. prevent the input, show a popup message) might be preferable.