A sign is posted outside eBay headquarters in San Jose, California.
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Actions of eBay climbed 10% on Wednesday while Meta said it would allow certain listings to appear on Facebook Marketplace, its popular platform connecting consumers for local item pickup and more.
eBay stock hit its highest level since November 2021.
The rollout will begin with a test in Germany, France and the United States, where buyers will be able to view listings directly on Marketplace and complete the rest of their transactions on eBay, Meta said in a statement. release.
The partnership could provide a boost to eBay’s Marketplace business, which has struggled to compete with e-commerce rivals like Amazon, WalmartTemu and even Facebook’s own marketplace platform that allows users to buy and sell items.
eBay has recently adopted niche categories such as collectibles and luxury goods to try to retain buyers and sellers on its site. CEO Jamie Iannone told CNBC in an interview in October that shoppers were coming to the site, known for its used and refurbished products, looking for discounts in a challenging macroeconomic environment.
Meta’s move is an attempt to appease the European Commission, the European Union’s executive body, after the regulator fined the company 797 million euros ($821 million) in November for linking its Marketplace product to the main Facebook app.
At the time, the Commission said Meta’s bundling of Marketplace with Facebook could mean competitors would effectively be “excluded” given the platform’s distribution reach. Facebook has over 3 billion users worldwide.
The Commission also said Meta imposes “unfair commercial conditions” on other online classifieds service providers that advertise on its platforms, including Facebook and Instagram. He added that these terms allow Meta to use data generated by other advertisers for the benefit of Marketplace.
Meta then appealed the decision, saying it “ignores the realities of the thriving European market for online classifieds services.”
“While we disagree with the European Commission’s decision regarding Facebook Marketplace and continue to appeal, we are working quickly and constructively to develop a solution that addresses the points raised,” the company said on Wednesday.
EBay touted its integration with Facebook Marketplace as a way for the e-commerce site to “increase exposure to our sellers’ listings, both on and off eBay, as part of our strategy to engage buyers and drive greater loyalty.” customers”.
Facebook in 2023 announced a similar partnership with Amazon which allows users to browse and purchase products without leaving the app.
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Additional reporting by CNBC’s Annie Palmer.
