The UK’s Competition and Markets Authority (CMA) has formally initiated its Phase 1 merger inquiry into the anticipated acquisition of fashion marketplace Depop Limited by e-commerce giant eBay Inc.
In a statutory notice issued under Section 96(2A) of the Enterprise Act 2002, the CMA confirmed that the formal merger notice submitted jointly by eBay and Depop meets all necessary legal requirements. The validation officially triggers the regulator’s standard 40-working-day review window. The initial review period will commence on June 9, 2026, establishing a strict statutory deadline of August 6, 2026, for the CMA to announce its initial decision. By that date, the watchdog will determine whether the transaction threatens to significantly lessen competition in the UK market, which would mandate a deeper, more intensive Phase 2 investigation.
The formal probe comes on the heels of an initial information-gathering process and an “invitation to comment” that the CMA extended to the public and market participants earlier this year. The acquisition—originally structured as a roughly $1.2 billion deal between eBay and Depop’s current owner, Etsy, Inc.—has faced a lengthening regulatory timeline. While the transaction has already secured antitrust clearance in the United States and Germany, it remains under active review by both the UK’s CMA and the Australian Competition and Consumer Commission. Due to the ongoing regulatory scrutiny, the merging parties recently amended their sale agreement, pushing their expected closing timeline out from the second quarter to the end of the third quarter of 2026.
The primary point of friction for the UK regulator centers on market consolidation within the secondhand online fashion sector. Antitrust officials are closely evaluating how absorbing Depop will impact the UK’s consumer-to-consumer digital marketplace. The review is particularly sensitive given eBay’s aggressive recent expansion in the pre-loved apparel space, which includes its 2025 acquisition of the European fashion app Tise and a recent structural pivot toward fee-free selling for casual UK consumers.
If the CMA uncovers significant competition concerns by its August deadline, eBay could be forced to offer substantial structural remedies, such as divestments, or face a protracted Phase 2 review that could trigger hefty termination fees built into its contract with Etsy.
