Meta Tests eBay Listings in Facebook Marketplace

Facing further fines in Europe amid concerns about its market dominance, Meta is exploring a new partnership with eBay that would see eBay ads appear on Facebook Marketplace, among its existing posts and offers.

As reported BloombergMeta wants to better align with EU competition laws, particularly in relation to marketplace listings, allowing eBay to display items within its own marketplace.

According to Bloomberg:

“Target offered to publish listings from competing classified ads eBay on Facebook Marketplace in an effort to adhere to landmarks European Union antitrust order.”

That antitrust order resulted in a fine for the company 797.72 million euros ($US841 million) back in November due to violations of EU antimonopoly rules related to the connection of Facebook Marketplace with Facebook and the market advantages provided by Facebook’s market service on the list of users.

Which is the result of a multi-year investigation.

Still in 2022. EU Commission alleged that Facebook violated local antitrust laws by “distortion of competition in online classifieds markets” and abuse of a dominant position.

The Commission’s view was that Facebook used the scale of its social network to give Facebook Marketplace an unfair advantage over other online ad providers, while also imposing unfair trading conditions competing online classifieds services that sought to advertise on Facebook or Instagram.

That investigation eventually resulted in a large fine, and now Meta is exploring new ways to comply with EU regulations on this front to avoid further fines.

This new eBay integration is supposed to be one of several integrations designed to mitigate market dominance and ensure a level playing field for online classifieds providers.

And while I’m not sure I agree conceptually with the EU’s findings, Meta’s ranking gives it a significant advantage, in many respects, and if it was punishing competitors by limiting its ads, it seems like it has a case there.

Although it can also be argued that such measures stifle competition, and I’m not sure that forcing platforms to open up their systems to competitors solves that the way EU officials seem to think. It also appears as a potential disincentive for business expansion in the region.

It is also worth noting that EU officials are also forcing Met to allow other messaging apps to integrate with WhatsApp and Messenger on the same line against the competition.

It may not be the best solution, but in any case, the EU has already established its position, and this is one possible solution that Meta has come up with that could help alleviate some of the concerns about its dominant size.

And ultimately, it could also be a win for consumers, with more choice on display within the Marketplace. This could direct you to additional offers and bargains, and Meta may need to expand this further, leading to a more Google-like shopping view.

Which, again, seems to punish Meta too much for her success.

Meta is launching a new test option in Germany, France and, interestingly, the US as well, which will allow buyers to view eBay listings on Facebook Marketplace before completing any eBay transaction.