UK Regulator Is Worried About $9.2B eBay-Adevinta Deal

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.

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