Key facts
- The UK's Competition and Markets Authority (CMA) has launched a formal review into eBay's acquisition of Depop.
- eBay is acquiring Depop from Etsy for approximately $1.2 billion.
- The CMA will examine the potential impact of the acquisition on competition within the UK market.
- The deadline for the CMA's phase 1 investigation is August 6.
Britain's competition regulator, the Competition and Markets Authority (CMA), has initiated a formal review of eBay's planned acquisition of the Gen-Z focused fashion resale platform Depop. eBay announced its intention to purchase Depop from Etsy for approximately $1.2 billion, with the deal expected to close this month. The CMA has concluded the initial phase of its information gathering, which included inviting comments from interested parties on the potential competitive impact of the transaction in the UK. The regulator aims to determine if the acquisition could lead to a substantial lessening of competition. The deadline for the CMA's phase 1 investigation is August 6, after which a decision will be made on whether to clear the deal or proceed to a more in-depth investigation. The acquisition is intended to help eBay expand its reach among younger consumers and bolster its position in the growing resale clothing market, while Etsy can concentrate on its core marketplace for handmade and vintage items.