The UK Competition and Markets Authority (CMA) has announced its decision to reopen its investigation into the completed acquisition of Sporting Index Limited’s business-to-consumer (B2C) operations by Spreadex Limited.
This follows a ruling by the Competition Appeal Tribunal (CAT) that overturned the CMA’s previous determination, necessitating a fresh review of the merger’s competitive impact.
Background of the Acquisition and Initial CMA Decision
On November 6, 2023, Spreadex Limited acquired the B2C business of Sporting Index Limited from Sporting Group Holdings Limited, a subsidiary of La Française des Jeux. The CMA initially intervened on January 15, 2024, issuing an Initial Enforcement Order (IEO) under Section 72(2) of the Enterprise Act 2002 to prevent any pre-emptive action that could impact competition.
Following an extensive review, the CMA referred the merger for further investigation on April 17, 2024, under Section 22(1) of the Act. The final report, published on November 22, 2024, concluded that the acquisition had led to a “substantial lessening of competition” (SLC) in the market for licensed online sports spread-betting services in the UK. Consequently, the CMA recommended a divestiture remedy, requiring Spreadex to sell the acquired business to mitigate potential anticompetitive effects.
Appeal and Tribunal’s Decision
On December 20, 2024, Spreadex lodged an appeal with the CAT, challenging the CMA’s findings and requesting the tribunal to overturn the decision. The appeal contended that the CMA’s conclusions on SLC were flawed and that the imposed remedies were disproportionate.
In response, the CMA filed its defense on February 3, 2025, reaffirming its stance and seeking to uphold its previous ruling. However, on March 4, 2025, the CAT issued an order quashing the CMA’s SLC determination and the associated remedy, instructing the regulator to reconsider the case and make new determinations.
Reopening of the Investigation
Following the CAT ruling, the CMA has extended the period for its reassessment until March 28, 2025. The regulator will now undertake a fresh analysis to determine whether the merger results in an SLC and, if so, what remedial action should be implemented.
A spokesperson for Spreadex expressed optimism regarding the reassessment, stating, “We hope that in this new review, the CMA will be able to reach a decision that best serves the interests of Sporting Index, its customers, and the wider UK economy“, Reuters reported.
Implications for the UK Online Sports Betting Market
The outcome of the reopened investigation could have significant implications for competition in the UK’s online sports betting industry. If the CMA reaffirms its concerns, Spreadex may face divestiture or other regulatory interventions. Alternatively, a revised ruling in favor of the acquisition could set a precedent for future consolidation in the sector.
The CMA is expected to publish its findings and any potential remedial actions following the conclusion of its reassessment later this month.
