CMA clears eBay's $1.2bn Depop deal, removing key hurdle

eBay moved a step closer to closing its $1.2bn acquisition of Depop after the UK Competition and Markets Authority cleared the deal. The CMA said it would not refer the purchase of the fashion resale app from Etsy for a deeper investigation, following an initial review.

The clearance removes a regulatory overhang that had hung over the transaction since it was announced. The CMA's phase 1 probe examined whether the deal would substantially lessen competition in the UK market for online resale of secondhand clothing and accessories. It concluded it would not.

Etsy bought Depop in 2021 for $1.6bn. The sale to eBay at a $400m discount reflects how the app's growth has slowed since the pandemic-era boom in secondhand fashion.

eBay has been rebuilding its own sneaker and streetwear business, and Depop's younger user base – roughly 90% of its 30 million registered users are under 26 – gives the company a direct channel into Gen Z shoppers. The deal is expected to close in the coming weeks, subject to remaining customary conditions.