The UK Competition and Markets Authority (CMA) has cleared eBay’s proposed $1.2 billion (£890 million) acquisition of fashion resale platform Depop, allowing the transaction to proceed following a Phase 1 merger investigation.
The regulator confirmed that it would not refer the deal for a more detailed Phase 2 inquiry after assessing whether the acquisition could lessen competition in the UK’s second-hand fashion market. The CMA added that the full reasoning behind its decision would be published at a later date.
The decision follows the launch of the CMA’s formal investigation in June, after determining that the merger notice met the requirements of the Enterprise Act 2002. The regulator also conducted a public consultation, inviting retailers, consumers and other interested parties to submit views on the potential impact of the transaction on competition in the UK.
eBay announced plans to acquire Depop from Etsy in February in a deal designed to strengthen its position in the growing resale fashion market and broaden its appeal among younger consumers.
Founded in London in 2011, Depop has built a strong following among Gen Z and Millennial shoppers through its social-first marketplace for second-hand fashion. The companies have previously said the platform will retain its name, brand, platform and culture following completion of the acquisition.
When the deal was first announced, Jamie Iannone, Chief Executive of eBay, said Depop had built a “trusted, social-forward marketplace with strong momentum in the pre-loved fashion category”, adding that the business would benefit from eBay’s scale, complementary offerings and operational capabilities.
The acquisition forms part of eBay’s wider strategy to strengthen its presence in fashion resale, a category that has continued to attract investment as consumers increasingly embrace second-hand shopping.
The CMA’s clearance removes a key regulatory hurdle for the transaction, which was originally expected to complete during the second quarter of the year. The acquisition can now proceed, subject to the remaining closing conditions.