In the middle of concerns about a substantial lessening of competition, further investigation by the Competition and Markets Authority comes.
A recent acquisition encompasses the sale of the Sports Index, a spread betting operator. This spread is towards Spreadex capturing the attention of the CMA or Competition and Markets Authority in the United Kingdom. The deal dates back to November 2023. FDJ, or La Française des jeux, agreed to sell Sports Index to Spreadex. The latter is a competitor in the same industry. The company did not disclose financial details about the acquisition.
The CMA confirmed the launch of an inquiry into the merger in early 2024. According to the Authority in April, the merger between Spreadex and Sports Index may have created a monopoly. The CMA said that the merger may have resulted in a substantial lessening of a competition during this time.
The CMA’s investigation into the merger continues as of today. The Authority recently confirmed that it referred the business combination for further in-depth investigation. The primary reason for the additional careful examination is the unexpected substantial lessening of competition within the United Kingdom market.
The CMA released a statement announcing the referral of the completed acquisition by Spreadex Limited of the B2C business of Sporting Index Limited for an in-depth investigation. The basis for this referral is the concern that, based on the available information, the merger may lead to a significant decrease in competition within certain markets in the United Kingdom.
The phase 1 decision maker for the case at the CMA, Naomi Burgoyne, also gave a statement. She stated that they believe this deal could eliminate competition for sports spread betting services, potentially granting Spreadex a monopoly in this market. It is important that customers can rely on competition in the market to keep odds competitive.
