eBay has moved a step closer to completing its $1.2bn acquisition of Depop after the UK competition watchdog gave the deal the green light.
The Competition and Markets Authority has cleared eBay’s proposed purchase of the fashion resale app from Etsy, following an initial investigation.
The CMA said it would not refer the acquisition for a more detailed phase two inquiry, removing a significant obstacle to the deal’s completion. The body had opened its formal review in June and invited retailers, consumers and other interested parties to comment on its potential impact on competition in the UK.
eBay agreed to buy Depop from Etsy for around $1.2bn in cash in February to strengthen its position in the fast-growing second-hand fashion market and attract more younger shoppers.
Depop, which was founded in London in 2011, has built a particularly strong following among Gen Z and millennial consumers through its mobile-first, social shopping experience.
The platform recorded gross merchandise sales of about $1bn in 2025 and had seven million active buyers at the end of the year, nearly 90 per cent of whom were under 34. It also had more than three million active sellers.
eBay said the acquisition would complement its existing fashion business, which generates more than $10bn in annual gross merchandise volume.
The online marketplace plans to use its global reach, payments, shipping services and authentication capabilities to accelerate Depop’s growth. It also intends to explore opportunities to make Depop products more visible through cross-listing across its wider platform.
Depop is expected to retain its name, brand and standalone platform once the transaction is completed.
The deal also allows Etsy to sharpen its focus on its core marketplace for handmade, vintage and creative products. The company said it planned to use the proceeds for general corporate purposes, further share buybacks and investment in its main business.
Etsy acquired Depop in 2021 as demand for resale fashion surged during the pandemic, but has since been simplifying its portfolio as it works to revive growth across its main marketplace.
The CMA said the full reasoning behind its decision would be published at a later date.
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