The Competition and Markets Authority (CMA) continues its in-depth investigation into the completed acquisition by Spreadex Limited of the B2C business of Sporting Index Limited. This ongoing scrutiny follows a series of appeals and a remittal of the case, highlighting the complexities involved in merger control within the UK's financial spread betting sector.
Initially, the CMA's Phase 2 investigation, which began in April 2024, provisionally identified competition concerns in July 2024. Despite this, the CMA published its final report in November 2024. However, the Competition Appeal Tribunal (CAT) later quashed the CMA’s Phase 2 decision regarding a substantial lessening of competition and its final decision on remedies in March 2025, referring the case back to the CMA for reconsideration.
Following this remittal, the CMA initiated a new investigation process. In June 2025, the CMA once again provisionally found competition concerns arising from the merger. Spreadex subsequently appealed the CAT’s initial judgment, but these appeals were dismissed by the CAT in March and April 2026. Further efforts by Spreadex to appeal to the Court of Appeal were also refused in June 2026, on an expedited basis.
The CMA has since appointed a remedy group, effective from May 2026, to address the identified competition issues. This group is tasked with determining appropriate undertakings to mitigate any potential adverse effects on competition in the market. The extended timeline of this investigation underscores the CMA's commitment to ensuring fair competition in the UK market, particularly in sectors that impact consumer choice and pricing.
For businesses operating in the financial spread betting and trading sectors, this case serves as a significant precedent. It reinforces the CMA's robust approach to merger control and its willingness to challenge transactions that could lead to reduced competition. The protracted legal battles also highlight the substantial costs and operational uncertainties that companies may face when their acquisitions attract regulatory scrutiny.
While this specific case focuses on a niche financial market, the broader implications for UK businesses considering mergers or acquisitions are clear: thorough due diligence regarding competition law and a readiness for potential regulatory challenges are paramount. The CMA's consistent stance on competition concerns, even after judicial review, signals its determination to uphold market integrity.
Source: Competition and Markets Authority