eBay's Depop Acquisition Under Review by UK Competition Watchdog

The UK's Competition and Markets Authority (CMA) launched a Phase 1 investigation on June 9, 2026 into EBAY's $1.2 billion acquisition of Depop, the peer-to-peer secondhand fashion marketplace. The CMA has invited third parties — including rival platforms, sellers, and consumer groups — to submit evidence by June 30. Phase 1 reviews typically conclude within 40 working days; if the CMA finds grounds for concern, it can escalate to a more intensive Phase 2 investigation that could take up to 24 weeks and impose remedies or block the deal.

eBay announced the Depop acquisition in early 2026 as a strategic play to capture younger secondhand fashion consumers — a segment where Depop has strong brand recognition among Gen Z shoppers in the UK and US. The $1.2 billion price represented a significant premium for a marketplace that has not yet reached profitability. eBay's existing C2C fashion vertical on its core platform competes directly with Depop's model, which is precisely the overlap the CMA will scrutinize: whether the combined entity would reduce competition in the UK peer-to-peer fashion resale market.

The investigation adds regulatory uncertainty to a deal that EBAY had been positioning as a key growth vehicle. A parallel review by the US FTC is possible but has not been announced. The broader context is that UK regulators have become notably more interventionist on tech M&A since 2023 — the CMA blocked the Microsoft-Activision deal initially before accepting remedies, and blocked Adobe's acquisition of Figma outright. Investors should watch for the Phase 1 outcome and whether eBay signals willingness to offer behavioral remedies or divest overlapping marketplace assets.