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The UK Competition and Markets Authority (CMA) announced the launch of the first phase of its investigation after the merger notification was deemed to comply with the requirements of the Enterprise Act 2002. This allows for the formal assessment of the deal to begin, Reuters reports.
At this stage, the regulator will examine whether the acquisition would weaken competition in the fashion resale platform segment, particularly those targeting a young audience. The preliminary review began on June 9, and a decision on whether to proceed to the second, more in-depth phase is expected by August 6.
A key focus of the analysis will be the potential strengthening of eBay’s position through access to Depop’s audience, which is considered one of the “youngest” and trendiest in the resale segment. Combined with eBay’s scale, this could shift the balance of power in the market.
The deal, announced in February, reflects Etsy’s strategic shift toward focusing on its core marketplace for handmade and vintage goods. The company is operating against a backdrop of slowing consumer demand and intensifying competition in e-commerce.
