The Competition and Markets Authority (CMA) has begun a merger inquiry into the anticipated acquisition of second-hand platform Depop by eBay.
The regulator is seeking views on the impact the deal could have on competition in the UK.
The CMA said on Monday (June 8) this was not a formal investigation into the transaction, but formed the first part of its information-gathering process.
Interested parties have until August 6 to provide feedback to the regulator.
It was announced in February that eBay would acquire Depop from its online marketplace owner Etsy for $1.2bn.
The deal is expected to enable the ecommerce giant to extend its appeal to “younger, fashion-forward consumers… in one of the most dynamic areas of resale”.
Depop has 7 million active buyers, almost 90% of which are under the age of 34, and more than 3 million active sellers.
It generated annual gross merchandise sales of around $1bn last year.
Depop chief executive Peter Semple said in February: “We’re thrilled to begin this next chapter with eBay, whose experience in the C2C fashion space and shared belief in people, opportunity, and a more sustainable future positions us to meaningfully accelerate our marketplace in the US and beyond.
“This transaction is a testament to the significant growth we have delivered as we have evolved our product experience and strengthened our brand’s place in the world.”
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