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
Veteran Lawyers Launch Boutique Antitrust Firm in NY and DC
Oct 6, 2024 by
CPI
EU’s Top Court Upholds Antitrust Veto on Thyssenkrupp-Tata Steel Deal
Oct 6, 2024 by
CPI
Brazil’s Court Delays X’s Return Over Fine Payment Dispute
Oct 6, 2024 by
CPI
Tencent and Guillemot Family Consider Potential Buyout of Ubisoft
Oct 6, 2024 by
CPI
Second Price-Fixing Case Against Hotel-Casinos Dismissed by Federal Judge
Oct 6, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh