The Competition and Markets Authority has launched an invitation to comment on the proposed acquisition of Depop Limited by eBay Inc., marking the first step in its review of the transaction. While the formal Phase 1 investigation has not yet begun, the consultation signals early regulatory scrutiny of a deal that could reshape parts of the online fashion resale market in the UK.
The CMA is asking interested parties to submit views on how the transaction might affect competition, with a deadline set for 8 May 2026. This information-gathering stage is part of the pre-notification process and will inform whether the authority proceeds to a full investigation under UK merger control rules. The regulator is particularly interested in feedback from market participants, including competitors, sellers, and consumers.
The deal itself was announced by eBay Inc. and Etsy Inc., under which eBay will acquire Depop for approximately $1.2 billion in cash. Depop, a fast-growing, mobile-first marketplace focused on secondhand fashion, has built a strong position among younger consumers, with around 7 million active buyers and a predominantly Gen Z and Millennial user base. The platform has also experienced significant growth, particularly in the United States, where gross merchandise sales have surged.
For eBay, the acquisition is intended to strengthen its consumer-to-consumer offering, particularly in fashion resale, a category that already represents a major share of its business. By integrating Depop’s social and community-driven marketplace with its own global infrastructure, eBay aims to expand its reach among younger users and enhance its position in the rapidly growing recommerce segment.
For Etsy, the sale reflects a strategic shift toward focusing on its core marketplace for handmade and creative goods. The company plans to use the proceeds to support its primary platform and return value to shareholders.
The CMA’s early engagement suggests that, despite the presence of large global competitors in online resale and fashion marketplaces, regulators are attentive to potential overlaps in niche segments such as secondhand fashion and mobile-first platforms. The consultation phase will provide an initial indication of whether concerns may arise around market concentration, platform dynamics, or the impact on independent sellers and buyers.
The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals, making the CMA’s next steps a key development to watch.
