The watchdog added that it is concerned the merger could lead to a loss of competition between Shpock, Gumtree and eBay's marketplace, with only Facebook Marketplace remaining as a significant competitor.
It said: “This could reduce consumer choice, increase fees or lower innovation in the supply of platforms that allow people to buy and sell goods online.”
Adevinta and eBay now have until February 23 to offer solutions to resolve the concerns. The CMA then has 5 working days to consider whether to accept the offer instead of referring the deal to an in-depth investigation.
Adevinta said that while it and eBay do not agree with the CMA’s reasoning, they will work constructively with the watchdog “and are confident in finding a suitable resolution”.
The buyer added that in 2019, eBay Classifieds Group’s UK business accounted for less than 10% of its consolidated revenues, and Adevinta’s UK business accounted for only 1% of its consolidated revenues.
It is understood potential options that may be considered by Adevinta to resolve the concerns include selling one or both of the UK divisions.
