UK regulator asks Spreadex to sell Sporting Index business over competition concerns
Nov 22 (Reuters) -Britain's competition watchdog said on Friday Spreadex must sell the business it bought from Sporting Index last year because acombined entity would harm competition in the market for licensed online sports spread-betting.
The Competition and Markets Authority (CMA) said an independent panel which looked into the deal concluded that the sale remedy proposed by Spreadex was enoughto resolve the competition concerns provided it included "some modifications and enhancements".
A Spreadex representative told Reuters in an emailed statement that the company strongly disagrees with the "entirely disproportionate decision" from the CMA.
"We are reviewing all available options," the Spreadex representative said. Sporting Index did not immediately respond to a Reuters request for comment.
Spreadex bought the "business-to-consumer" arm of Sporting Index from Sporting Group Holding Ltd last year. The two companies offer online fixed-oddsbetting services and online sports spread-bettingservices to UK-based customers.
"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," Richard Feasey, the chair of the panel reviewing the merger, said in a statement.
The CMA has 12 weeks to either accept the final undertakings from Spreadex, or to make a final order requiring Spreadex to sell Sporting Index to a CMA-approved buyer.
Reporting by Yamini Kalia and Aby Jose Koilparambil in Bengaluru, Editing by Sahal Muhammed and Devika Syamnath
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