The Competition and Markets Authority (CMA) has determined that Spreadex’s completed acquisition of Sporting Index did create a monopoly within the UK’s online sports spread betting market.
Spreadex first agreed terms with FDJ United, Sporting Index’s then-owners, in November 2023, before the CMA opened its investigation into the deal a month later, proceeding to launch a merger inquiry in February 2024.
Though the CMA found “significant competition concerns” due to the deal and asked Spreadex to divest Sporting Index in November 2024, the Competition Appeal Tribunal ruled in favour of Spreadex four months later.
However, the CMA has outlined that after obtaining more evidence, the independent panel at the helm of the investigation has ruled that the merger did eliminate competition within the UK market.
The panel also noted that such a monopoly could spark a worse user experience, as well as a “more limited range” of products and potentially higher prices for consumers.
When detailing its reasons for investigating the merger, the CMA noted it has jurisdiction of the deal because Spreadex and Sporting Index have a combined 100% share of supply for the licensed online sports spread betting market in the UK.
As part of its investigations, the CMA looked to identify whether sports fixed odds betting providers, financial spread betting providers or unlicensed sports spread betting providers could be considered as competitors to Spreadex and Sporting Index.
The watchdog argued that “significant differences” between the various companies means they cannot be considered close alternatives to sports spread betting.
Richard Feasey, chair of the independent panel, explained: “We found that the merger substantially lessens competition by removing Spreadex’s only competitor in the sports spread betting market in the UK.
“We also found that the only effective remedy would be for Spreadex to sell Sporting Index to restore competition in the supply of licensed online sports spread betting in the UK.
“Doing so would mean customers in the UK have greater choice between two independent businesses, rather than one.”
The CMA has explained that the next course of action will either be to accept undertakings that may be offered by Spreadex to sell Sporting Index, or to impose an order that requires Sporting Index is sold to a suitable CMA-approved buyer.
The post CMA: Spreadex takeover of Sporting Index created a monopoly first appeared on EGR Intel.
Market watchdog orders St Albans-based business to divest Sporting Index and hand it over to a buyer that the regulator approves of
The post CMA: Spreadex takeover of Sporting Index created a monopoly first appeared on EGR Intel.