June 8 (Reuters) – Britain’s competition regulator said on Monday it would begin formally reviewing eBay’s planned acquisition of Gen-Z focused fashion resale platform Depop after ending the first part of its information gathering process. The Competition and Markets Authority (CMA) said it had closed its invitation to comment, where interested parties had a chance to tell the regulator how the proposed transaction would impact competition in the UK.
eBay announced in February it planned to buy Depop from Etsy for about $1.2 billion and the purchase is expected to close this month.
The deal is expected to help eBay expand its reach with younger shoppers and strengthen its position in the fast-growing resale clothing market, while Etsy focuses on its core handmade and vintage goods marketplace in pursuit of a turnaround.
The CMA said the deadline for its phase 1 investigation was August 6, after which it would decide whether to clear the deal or refer it for a more in-depth investigation.
Etsy and eBay did not respond to Reuters’ requests for comment.
(Reporting by Prerna Bedi, Zaheer Kachwala and Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema and Kevin Liffey)
