The Competition and Markets Authority (CMA) is taking a look at the motors.co.uk acquisition by eBay. Motors.co.uk, currently owned by Cox Automotive, is a UK classifieds marketplace for cars.
eBay intends that Motors.co.uk will become a part of Gumtree UK, an eBay Classifieds business. The combined Motors.co.uk and Gumtree UK along with eBay Motors offer more than 620,000 car listings, setting up the eBay group as a leading alternative to the current UK motors market leader. Adding Motors.co.uk to the eBay stable adds around 350,000 used car listings to eBay and Gumtree – Autotrader carries around 500,000 car listings.
A merger inquiry has been opened by the Competition and Markets Authority regarding the Motors.co.uk acquisition by eBay UK, with an invitation to comment via written representation available to all interested parties.
The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
– Competition and Markets Authority
The timing isn’t particularly convenient, the invitation to comment expires on the 27th of December immediately after the Christmas Day and Boxing Day bank holidays.