Sept 19 (Reuters) - Britain's competition watchdog on

Friday said it had determined that Spreadex's acquisition of

Sporting Index's consumer-facing arm created a monopoly in the

UK licensed online sports spread betting market and could

require the company to sell the unit.

An independent Competition and Markets Authority (CMA)

panel, which led the review, said the deal could lead to a worse

user experience, limited range of products or higher prices for

consumers in the UK.

A Spreadex spokesperson told Reuters in an email, "Spreadex

strongly disagrees with this entirely disproportionate decision

and are reviewing all available options."

Spreadex bought the "business-to-consumer" arm of Sporting

Index from Sporting Group in 2023. The two companies offer

online fixed-odds betting services and online sports

spread-betting services to UK-based customers.

Sports spread betting differs from fixed-odds betting by

enabling customers to bet on multiple potential outcomes of

sporting events, rather than solely betting on whether a team

wins or loses.

The CMA reopened its investigation into the deal in March

after its order in November 2024 requiring Spreadex to sell the

business over competition concerns was overturned by the

Competition Appeal Tribunal (CAT) following an appeal by

Spreadex.

"We found that the merger substantially lessens

competition by removing Spreadex's only competitor in the sports

spread betting market in the UK," Richard Feasey, chair of the

independent panel, said in a statement.

The CMA said it will now decide whether to accept

undertakings from Spreadex to sell Sporting Index or mandate the

sale of the business to a CMA-approved buyer.