Ebay’s proposal to buy Depop for US$1.2 billion has been approved by the UK’s Competition and Markets Authority (CMA) following a competition review.

In February, Ebay had agreed to buy Depop from Etsy in an all-cash transaction.

The CMA launched its review in April, inviting public feedback before opening a formal merger investigation in June under the Enterprise Act 2002.

Depop operates a mobile-first second-hand fashion marketplace. Following the acquisition, the company will continue to operate under its existing brand, platform, and management.

Ebay said the deal will strengthen its consumer-to-consumer strategy by expanding its reach among younger shoppers and increasing its presence in the resale market.

Etsy acquired Depop in 2021 as part of its strategy to expand its portfolio of specialist marketplaces. The sale comes as Etsy sharpens its focus on its core marketplace business.