The听Competition and Markets Authority听has raised concerns over听eBay鈥檚 proposed sale of Gumtree to听Shpock.听
Austria鈥檚听Adevinta, parent company of online classified sales platform Shpock, is lining up a merger purchase of eBay Classified Group, parent company of Gumtree, from eBay.听
A Phase 1 investigation听found the听拢6.5 billion听deal could听lead to higher prices and less choice for consumers.听
With the sale to听Adevinta, eBay will acquire a 33.3 per cent voting stake in Adevinta and positions on its board. This means eBay would be able to participate in the management of Adevinta听and could enable it to influence the business strategy for both Gumtree and听Shpock, said the CMA.听
In addition, having reviewed eBay鈥檚 internal documents at the time the decision was made to sell听eCG听to听Adevinta, the CMA said听there would have been a realistic chance eBay would have sold Gumtree to a different purchaser without retaining its influence.听听
It says this would have resulted in Gumtree becoming an independent competitor to eBay鈥檚 marketplace.听
鈥淭here is a realistic chance that without this deal Gumtree and听Shpock听would have been direct competitors to eBay, which is by far the biggest player in this market,鈥� said听Joel Bamford, senior director of mergers听at the CMA.听
鈥淚t is important that people have choice when it comes to selling items they no longer require or searching for a bargain online, and that they can enjoy competitive fees and services.听
鈥�This is the latest in a series of merger probes by the CMA involving large digital companies, where we are thoroughly examining deals to ensure that competition is not restricted, and consumers鈥� interests are protected.鈥�听
Adevinta and eBay now have until 23rd February 2021 to offer legally binding solutions to resolve the CMA鈥檚 competition concerns.
The CMA then has five working days to consider whether to accept the offer instead of referring the deal to an in-depth investigation.听