The SpreadEx purchase of spread betting rival Sporting Index has been deemed a threat to the integrity of the free UK market.

This was clearly outlined in the final report of the UK’s Competition and Market Authority (CMA), after almost a year of investigations by the watchdog into the case.

SpreadEx first announced that it had secured the purchase of Sporting Index from then-owner Groupe FDJ (now FDJ United) back in November 2023. Given that the latter was the only viable competitor of SpreadEx in the UK spread betting space, the CMA was quick to raise its eyebrow at the deal.

An investigation by an independent panel then ensued, the first findings of which were published in November 2024, where the CMA expressed considerable concern about the stifling of competition that this deal would lead to.

SpreadEx then made an appeal to the Competition Appeal Tribunal (CAT), which then advised the CMA to reevaluate its decision.

After going through all existing and newly-gathered evidence one more time, the independent panel looking into the now-completed merger has once again conclusively decided that the takeover will lead to a breach of the UK’s competition rules.

Such a breach, as per the CMA, includes but is not limited to “a worse user experience, a more limited range of products and/or higher prices for consumers in the UK”.

Chair of the independent panel, Richard Feasey, added: “We found that the merger substantially lessens competition by removing SpreadEx’s only competitor in the sports spread betting market in the UK.”

According to Feasey, a potential remedy to avoid any regulatory challenges and restore competition in the market is for SpreadEx to sell off Sporting Index – something that SpreadEx had already offered on its own terms.

“Doing so would mean customers in the UK have greater choice between two independent businesses, rather than one,” Feasey added.

Of course, the cards are now in CMA’s hands, which has one of two options – either accept the conditions proposed by SpreadEx for the sale of Sporting Index, or issue an order that will require SpreadEx to sell the asset only to an CMA-approved buyer.