UK competition regulator approves eBay's acquisition of Depop from Etsy

Wednesday 15 July 2026 - 08:00

By: Sahili Aya

UK competition regulator approves eBay's acquisition of Depop from Etsy

Britain's competition regulator has approved eBay's planned acquisition of fashion resale platform Depop from Etsy, removing a significant regulatory obstacle as the U.S. ecommerce company moves forward with its expansion in the fast-growing second-hand fashion market.

The decision follows an initial review by the Competition and Markets Authority (CMA), which concluded that the transaction does not require a more extensive competition investigation.

CMA ends initial review without deeper investigation

The Competition and Markets Authority announced that it would not refer the proposed acquisition to a Phase 2 inquiry, clearing the deal after its preliminary assessment.

The regulator had launched its Phase 1 investigation last month to examine whether the transaction could reduce competition in the UK market. During the review, businesses and other interested parties were invited to submit their views on the potential impact of the acquisition.

By deciding against a more detailed investigation, the CMA has removed one of the final regulatory hurdles ahead of the transaction's completion.

eBay strengthens position in resale fashion

eBay unveiled the agreement to acquire Depop from Etsy in February in a deal valued at approximately $1.2 billion.

The acquisition is intended to strengthen eBay's presence in the rapidly expanding resale apparel sector while increasing its appeal among younger consumers, a demographic that has helped drive growth in online second-hand fashion marketplaces.

Depop has built a strong reputation among Gen Z shoppers by combining peer-to-peer commerce with a social media-inspired shopping experience, making it one of the most recognizable brands in the global resale market.

Growing competition in the second-hand marketplace

The online resale industry has experienced sustained growth as consumers increasingly embrace circular fashion, affordability and sustainability. Competition among digital marketplaces has intensified as major ecommerce companies seek to capture a larger share of this expanding segment.

With the UK's competition regulator now granting clearance, eBay is in a stronger position to finalize the acquisition and integrate Depop into its broader ecommerce portfolio.