Concerns About Selling Ebay Classifieds

Ebay classifieds is supposed to go to a competitor, Ebay receives large shares for it. The concept raises concerns with UK authorities.

British competition watchdogs have raised concerns about the takeover of eBay’s classifieds business by the operator of the competition platform Shpock. They fear higher prices and less choice for consumers, as Ebay would get a third of the voting rights in the new owner after the transaction.

The Ebay group with its marketplace business will get a 33 percent share of the voting rights in the deal in the Norwegian Shpock owner Adevinta and can thus exert influence on its business strategy, argued the competition authority CMA (Competition and Markets Authority) on February 16, 2021.

 

The fear is that Ebay would undo the competition between Ebay classifieds or its British counterpart Gumtree, the Adevinta portal Shpock and its own Ebay main page. Then there would only be the Facebook marketplace in Great Britain as an independent competitor. This scenario can also be applied to Germany.

 

Selling to other interested parties would have been possible

The CMA criticizes that Ebay could have sold its classifieds business to other bidders without retaining any influence. This would have meant that Gumtree or Ebay classifieds would have become an independent competitor.

Selling to other interested parties would have been possible

The CMA criticizes that Ebay could have sold its classifieds business to other bidders without retaining any influence. This would have meant that Gumtree or Ebay classifieds would have become an independent competitor.

The sale of Ebay’s classifieds division to Adevinta for a good $ 9 billion in cash and shares was negotiated last summer of 2020. The Federal Cartel Office gave the green light for the deal in November 2020 – among other things, because Shpock only has small market shares in Germany and the merging of the platforms under one roof will therefore not lead to a significant impediment to competition.

Source

Read Also : vmira

 

 

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