UK competition watchdog could force Spreadex to sell Sporting Index assets

The Competition and Markets Authority has found “provisional competition concerns” over the merger.

UK.- The Competition and Markets Authority (CMA) is considering possible remedies after finding “provisional competition concerns” with the merger of Spreadex and Sporting Index. That’s the verdict of the independent panel leading a second probe into Spreadex’s acquisition of Sporting Index’s retail business.

Spreadex is the UK’s biggest spread betting operator. The CMA ruled that the merger with Sporting Index eliminated the only licensed competition, which could lead to a decline in user experience, more limited products and/or higher prices for consumers. It says potential remedies could include a requirement for Spreadex to sell some or all of the Sporting Index assets it acquired.

Richard Feasey, chair of the panel, said: “Having assessed this deal, our provisional conclusion is that it raises serious competition concerns in the licensed online sports spread betting market. It would remove the only other licensed provider of sports spread betting in the UK and could lead to a worse user experience for consumers. We will now be considering how best to remedy this lessening of competition.

“Given that Spreadex has already acquired certain Sporting Index assets, our initial view is that Spreadex would need to divest sufficient assets to allow a purchaser to operate a rival licensed spread betting business on a standalone basis.”

The panel will issue a final report by November 26 following consultations on the provisional findings and potential remedies.

The news comes shortly after Spreadex renewed its sponsorship deal with Sunderland AFC, allowing non-branded shirts.