The Competition and Markets Authority (CMA) has ruled that Spreadex must sell its Sporting Index business to address competition concerns in the United Kingdom.
Spreadex acquired Sporting Index’s B2C business from La Française des Jeux (FDJ) last November, with the CMA launching a merger inquiry in February 2024 over concerns that the deal harmed competition for licensed online sports spread betting services.
After completing an initial Phase 1 investigation in April, the CMA’s in-depth Phase 2 investigation concluded that the deal created a monopoly in the UK licensed online sports spread betting market, eliminating competition in that market.
The panel concluded that the merger could lead to a worse user experience, a more limited range of products, and/or higher prices for consumers in the UK.
“This deal eliminates competition in the supply of licensed online sports spread betting services in the UK,” said Richard Feasey, chair of the independent panel reviewing the merger. “Sports spread betting – like any other market – needs competition to drive good customer experience, maintain choice and keep prices competitive.
“To achieve this, we have decided that Spreadex should sell Sporting Index, so that customers can choose between two firms for the best user experience and prices, rather than having to use only one.”
With some modifications and enhancements, a sale remedy proposed by Spreadex has been accepted by the CMA.
The CMA now has 12 weeks to either accept final undertakings from Spreadex, or to make a final order requiring Spreadex to sell Sporting Index to a suitable CMA-approved buyer.