KEY TAKEAWAYS
- The CMA launched its formal Phase 1 probe on 8 June 2026 and must decide by 6 August whether the deal requires a deeper Phase 2 investigation.
- Depop has approximately 7 million active buyers, around 90% under the age of 34, and over 3 million sellers, generating roughly $1 billion in global gross merchandise value in 2025.
- eBay already owns Norwegian secondhand fashion app Tise, which recently expanded into global markets, a detail regulators on both sides of the Atlantic are examining closely.
- Australia’s competition regulator launched its own assessment of the same deal earlier this spring, creating a parallel regulatory process in two jurisdictions simultaneously.
The UK competition regulator has launched a probe into eBay’s $1.2bn acquisition of Gen Z-focused fashion resale platform Depop from Etsy.
The Competition and Markets Authority confirmed a formal Phase 1 investigation, with a statutory deadline of 6 August to assess whether the deal may substantially lessen competition in UK markets.
The acquisition, announced earlier this year, is intended to help Etsy refocus on its core handmade and vintage marketplace as it seeks a turnaround amid weaker demand and increased competition from platforms such as Amazon. Neither eBay nor Etsy commented.
What the CMA Is Looking At and Why Tise Matters
One key factor for regulators is that another eBay-owned secondhand fashion marketplace, Tise, has recently expanded into global markets, potentially increasing antitrust concerns.
Tise, eBay’s first investment in the peer-to-peer secondhand space, now operates alongside Depop, with both platforms targeting younger secondhand fashion buyers.
If the CMA concludes that eBay would control too large a share of the UK resale fashion market through Depop and Tise combined, it could require remedies, including a partial divestiture, before approving the deal.
Depop generated about $1 billion in global GMV in 2025, with roughly 90% of active buyers under 34. That gives eBay a strong position among the consumers most likely to drive resale-commerce growth over the next decade.
The same competitive dynamic is at the centre of the UK High Court dispute between Shein and Temu over image copyright, where access to a dominant young-fashion audience is a key strategic asset.
What Happens Next for the eBay Deal
The CMA must decide by 6 August whether the acquisition warrants a deeper Phase 2 investigation.
A Phase 2 investigation would significantly extend the review process, with an independent panel conducting a more detailed competition assessment, potentially delaying or complicating completion of the deal.
Australia’s Competition and Consumer Commission (ACCC) opened its own assessment earlier this spring, meaning eBay must now navigate concurrent regulatory scrutiny in two jurisdictions. eBay has not publicly addressed the competition concerns raised in either market.
The CMA’s willingness to open formal proceedings on the same day the deal became public knowledge signals it intends to move at pace.
Importantly, this is the same watchdog that forced Google to hand publishers AI search opt-out powers and is unlikely to approve a deal of this scale without a rigorous first look.
Source: UK watchdog begins formal review of eBay’s purchase of Depop
