UK Competition Watchdog Approves eBay’s $1.2bn Depop Acquisition

The UK Competition and Markets Authority (CMA) has granted approval for eBay’s $1.2bn all-cash acquisition of Depop, the fashion resale platform previously owned by Etsy.

The transaction, first announced in February, involves eBay purchasing Depop directly from Etsy at a valuation of approximately $1.2 billion.

The CMA initiated a formal review on 23 April 2026, seeking public feedback over two weeks until 8 May, before commencing a detailed merger investigation in June under Section 96(2A) of the Enterprise Act 2002.

This review process allowed stakeholders to assess potential competitive impacts within the UK fashion resale market.

The acquisition has now cleared regulatory hurdles.

Depop will retain its name, branding, platform architecture, and corporate culture following the ownership transfer.

The platform operates as a mobile-first marketplace enabling direct consumer-to-consumer fashion resale transactions.

In 2025, Depop reported annual gross merchandise sales nearing $1 billion, with the US market experiencing 60% year-on-year growth.

As of December 31, 2025, the platform had seven million active buyers (90% under 34) and over three million active sellers.

eBay has positioned this acquisition within its strategy to strengthen consumer-to-consumer engagement, particularly with younger demographics, and expand its presence in resale fashion.

This regulatory approval occurs alongside other corporate developments at eBay, including a rejected $55.5bn acquisition offer from GameStop in May and a workforce reduction plan targeting 6% of global employees (approximately 800 roles) in March.

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