Britain’s competition watchdog on Tuesday, February 16, raised concerns over Adevinta’s planned acquisition of US e-commerce group eBay’s classified ads business, reported Reuters.
The US$9.2 billion deal announced in July would create the world’s largest classifieds group, but Adevinta and eBay must first resolve the Competition and Markets Authority’s concerns (CMA) to proceed with the takeover.
“The CMA is concerned the merger could lead to a loss of competition between Shpock, Gumtree and eBay’s marketplace, with only Facebook Marketplace remaining as a significant competitor,” the CMA said in a statement.
“This could reduce consumer choice, increase fees or lower innovation in the supply of platforms that allow people to buy and sell goods online.”
US group eBay owns UK online auction sites Gumtree and ebay.co.uk, while Adevinta owns Shpock.
With the sale of its classifieds business, eBay will acquire a 33.3% voting stake in Adevinta and positions on the Adevinta board, the CMA also noted.
In the latest CMA merger investigation involving large digital companies, the watchdog stated it is “thoroughly examining deals to ensure that competition is not restricted and consumers’ interests are protected.”
The CMA this month announced that Viagogo must sell StubHub’s international business after its US$4.05 billion purchase of eBay’s ticket-reselling business.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI