UK competition watchdog launches probe into Ebay’s purchase of Depop

Yesterday 11:30

The United Kingdom’s competition regulator has opened an investigation into eBay’s acquisition of the fashion resale platform Depop, a deal previously completed between major players in the online marketplace sector.

The probe will assess whether the purchase, valued at around $1.2 billion, could have a negative impact on competition within the digital resale and fashion marketplace industry. Authorities aim to determine whether the transaction reduces consumer choice, affects pricing, or strengthens eBay’s market position in ways that could limit fair competition.

Depop, known for its popularity among younger users and its focus on second-hand fashion, was originally owned by Etsy before being sold to eBay. The platform has become an important player in the growing global resale market, which has expanded rapidly due to increased interest in sustainable shopping and online peer-to-peer commerce.

Regulators in the UK have been paying closer attention to mergers and acquisitions in the technology and e-commerce sectors, particularly those involving platforms with large user bases. The investigation is part of broader efforts to ensure that digital markets remain competitive and accessible to smaller businesses and new entrants.

eBay has stated in previous communications that it expects to cooperate fully with regulatory authorities and remains confident that the acquisition will not harm competition. However, the outcome of the investigation could potentially lead to conditions being imposed on the deal or further regulatory action if concerns are identified.

The competition watchdog is expected to review market data, consult industry stakeholders, and evaluate consumer impact before reaching a final decision in the coming months. The case reflects growing global scrutiny of large technology companies and their influence over digital marketplaces.