The paramagnetic-to-ferromagnetic phase transition is believed to proceed through a critical point, at which power laws and scaling invariance, associated with the existence of one diverging characteristic length scale -- the so called correlation length -- appear. We indeed observe power laws and scaling behavior over extraordinarily many decades of the suitable scaling variables at the paramagnetic-to-ferromagnetic phase transition in ultrathin Fe films. However, we find that, when the putative critical point is approached, the singular behavior of thermodynamic quantities transforms into an analytic one: the critical point does not exist, it is replaced by a more complex phase involving domains of opposite magnetization, below as well as $above$ the putative critical temperature. All essential experimental results are reproduced by Monte-Carlo simulations in which, alongside the familiar exchange coupling, the competing dipole-dipole interaction is taken into account. Our results imply that a scaling behavior of macroscopic thermodynamic quantities is not necessarily a signature for an underlying second-order phase transition and that the paramagnetic-to-ferromagnetic phase transition proceeds, very likely, in the presence of at least two long spatial scales: the correlation length and the size of magnetic domains.
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