In a setback to a major deal, eBay has confirmed that the United Kingdom Competition and Markets Authority has announced a concern that the proposed transaction between eBay and Adevinta ASA could reduce competition in the U.K., following a Phase 1 review.
eBay and Adevinta have an opportunity to propose potential remedies to avoid the transaction being referred to further investigation. Although the companies do not agree with CMA’s reasoning, eBay stated, they will work constructively with the authority and are confident about finding a suitable resolution.
eBay and Adevinta will propose legally binding solutions to resolve the CMA’s competition concerns before the deadline of February 23. The CMA will then have five working days to consider whether to accept the solutions or refer the deal to an in-depth investigation. eBay indicated that it would provide a further update in early March following the CMA decision.
In 2019, eBay Classified Group’s U.K. business accounted for less than 10% of its consolidated revenues and Adevinta’s U.K. business accounted for only 1% of its consolidated revenues, the retailer noted.