EBay wins approval for acquisition of South Korea’s online marketplace Gmarket
By APThursday, April 23, 2009
EBay wins approval for South Korean acquisition
SEOUL, South Korea — Ebay Inc. has won regulatory approval to acquire online marketplace Gmarket, South Korea’s antitrust watchdog said Thursday.
The Korea Fair Trade Commission’s approval included various conditions for a period of three years such as keeping increases in registration and advertising fees within South Korea’s rate of inflation.
EBay announced last week it would pay as much as $1.2 billion to acquire Gmarket Inc., expanding its presence in South Korea, the world’s sixth-largest e-commerce market.
The San Jose, California-based company plans to combine Gmarket with Internet Auction Company, or IAC, the South Korean online marketplace it acquired in 2001.
Gmarket and IAC had a combined online marketplace share of 87.5 percent last year, the commission said.
Other conditions eBay must follow during the three-year period include not increasing sales commissions.
The regulator said eBay must also take steps to protect small sellers and establish and carry out a plan to follow South Korean antitrust law.
EBay may seek changes to the conditions after Jan. 1, 2011 in the event that market conditions change.
