EBay Wins Approval For South Korean Acquisition

SEOUL, South Korea (AP) — 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.