Meta Platforms Inc., parent company of Facebook, has announced a trial feature allowing users in Germany, France, and the U.S. to view eBay listings directly on its Marketplace platform. This move comes as Meta seeks to address antitrust charges from the European Union, which fined the company nearly 800 million euros for anticompetitive practices.
The European Commission, the EU’s executive branch, levied a 797.72 million euro ($841 million) fine against Meta, citing abusive practices in its Marketplace business. The commission’s investigation revealed that Meta unfairly tied its Marketplace service to Facebook, exposing users to Marketplace regardless of their preference and thereby sidelining competitors.
Margrethe Vestager, the European Commission’s executive vice-president for competition policy, stated, “Meta’s practices gave it advantages that other online classified ads service providers could not match. This is illegal under EU antitrust rules. Meta must now stop this behaviour.”
In response to the fine and ongoing scrutiny, Meta’s new trial will allow Facebook users to browse eBay listings on Marketplace but will direct them to complete transactions on eBay. This step is seen as an effort to separate the operations of Marketplace from Facebook’s social network, thus addressing the EU’s concerns.
Meta commented in a blog post, “While we disagree with and continue to appeal the European Commission’s decision on Facebook Marketplace, we are working quickly and constructively to build a solution which addresses the points raised.” The company emphasized that this integration could offer benefits to users on both platforms.
The announcement has positively impacted eBay’s market presence, with its shares rising following the news. eBay has assured that transactions originating from Facebook Marketplace will follow the same processes as direct purchases on eBay, including protections like its money-back guarantee.
For more details, visit the source: AP News.