Overview
- The U.K. Competition and Markets Authority has formally launched a first-phase merger probe that began with a notice to eBay and Depop on Monday and gives the CMA 40 days to assess competition risks.
- eBay agreed in February to buy Depop from Etsy for $1.2 billion in cash in a deal expected to close in the second quarter pending regulatory clearance.
- The CMA did not name specific concerns in its notice but can review the deal because it meets legal thresholds such as the target’s turnover or market share.
- If the CMA finds possible harm to consumers or rival businesses it can require fixes, open an in-depth Phase 2 probe that would delay closing, or in rare cases order remedies that could include unwinding the transaction.
- Depop is a London-based, mobile-first resale platform popular with Gen Z and its sale for less than Etsy paid nearly five years ago highlights shifting valuations in the online resale market.