The Competition Appeal Tribunal has quashed the previous ruling that Spreadex’s acquisition of Sporting Index resulted in a “substantial lessening of competition” of the UK spread betting market.
The final decision from the Competition and Markets Authority (CMA) for Spreadex to divest the Sporting Index assets has been annulled, with the case now referred to the CMA.
The watchdog will have to “reconsider and make a new decision or decisions” concerning the case.
Spreadex lodged an appeal against the CMA’s ruling in January, after the body handed down its ruling in December.
A four-person remittal group, led by chair Richard Feasey, has been appointed to oversee the reassessment. Feasey also led the initial independent panel observing the case.
The CMA had appealed Spreadex’s claims, but ultimately saw its efforts rebuffed by the tribunal.
The CMA has now published an interim order following the process, stating that Spreadex must not take any action which would lead to the integration of Sporting Index into the wider group.
The order also prohibits Spreadex from transferring ownership of either Spreadex or Sporting Index, or impair either operator from being able to compete independently.
There must also be no significant changes to staff and no business secrets or commercial information can pass between either party.
Spreadex and Sporting Index will be required to provide fortnightly updates to the CMA, with the first report due on 19 March, to showcase adherence to these parameters.
During the initial CMA investigation, Star Sports and 10star both expressed an interest in acquiring Sporting Index.
However, both groups held respective concerns over how a transaction would manifest.
Spreadex initially acquired Sporting Index from La Française des Jeux (FDJ) in November 2023.
The CMA first aired its monopoly concerns in January 2024, before the launch of a merger inquiry in February.
The post Spreadex scores win against CMA as Sporting Index divesture ruling quashed first appeared on EGR Intel.
Monopoly watchdog to reassess St Albans-based business’ acquisition of Sporting Index after appeals tribunal dismissed initial requirement for disposal
The post Spreadex scores win against CMA as Sporting Index divesture ruling quashed first appeared on EGR Intel.