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UK Regulator Opens Investigation Into eBay’s $1.2 Billion Depop Acquisition

By  |  June 8, 2026
eBay, eCommerce

The United Kingdom’s competition watchdog has launched an investigation into eBay’s planned $1.2 billion acquisition of fashion resale platform Depop from Etsy, adding regulatory scrutiny to a deal aimed at strengthening eBay’s position in the fast-growing secondhand fashion market.

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    The Competition and Markets Authority (CMA) said it is examining the proposed transaction to assess its potential impact on competition in the UK fashion resale sector. According to Reuters, the regulator formally opened its probe on Monday following an earlier information-gathering process that sought feedback from interested parties.

    The acquisition was announced earlier this year and would see eBay take control of Depop, a London-based online marketplace that has become particularly popular among younger consumers. Per Reuters, the transaction is valued at approximately $1.2 billion and comes as Etsy seeks to refocus on its core marketplace for handmade and vintage goods.

    The sale marks a significant shift for Etsy, which acquired Depop in 2021 for roughly $1.6 billion as part of a broader strategy to expand its portfolio of online marketplaces. However, Etsy has faced slowing demand and increased competition from larger e-commerce rivals, including Amazon, prompting the company to streamline its operations and concentrate resources on its flagship platform, according to Reuters.

    Read more: eBay Rejects GameStop’s $56 Billion Takeover Offer, Citing Financing and Strategic Concerns

    For eBay, the acquisition is part of a broader effort to deepen its presence in the resale and recommerce market. Depop has built a strong following among Generation Z shoppers and sellers, with the platform reporting millions of active users and significant growth in recent years, particularly in the United States. Industry observers view the purchase as a move by eBay to strengthen its appeal among younger consumers as competition intensifies in the secondhand fashion sector.

    The CMA had previously invited comments on the proposed acquisition as part of its preliminary review process. The regulator said it was seeking views on how the deal could affect competition in the UK market before deciding whether to proceed with a formal investigation.

    According to Reuters, neither eBay nor Etsy immediately responded to requests for comment after the watchdog announced the investigation.

    The regulatory review comes amid growing attention on consolidation within online resale marketplaces, where companies are competing for consumers increasingly interested in sustainable fashion and secondhand goods.

    Source: Reuters