Meta and eBay announced this week that it would test adding eBay listings to its Facebook Marketplace, sending the value of the online auction house skyrocketing in the process. The choice to add its competitor wasn’t entirely a result of Meta’s good graces, however.
The company currently faces headwinds from the European Commission as a result of Facebook Marketplace. Incorporating its direct competition will hopefully assist Meta’s appeal against a recent decision that found the social media giant guilty of abusive practices.
eBay goes Meta
The test takes place in the US, France, and Germany. The first location is an obvious one — both the auction marketplace and Meta are headquartered in the States and anything remotely useful shows up there first. France and Germany are more unlikely candidates but since they’re firmly in the EU, their participation is likely for legal reasons.
The way cross-platform listings will work is that (some) eBay items will be showing on Facebook Marketplace in those regions. Users can browse those listings but the transactions will be completed on the auction website. It’s not clear if Meta will take a cut of any transactions but it’s unlikely at this point in the partnership. And not just because it’s a test. Lawyers will probably also be taking notes on Meta’s behaviour.
The move is likely to be more favourable for eBay than its acquisition of an NFT marketplace in a bid to ride one of technology’s dumbest waves. Meta is doubtless hoping for a similar benefit, that of having its R15.8 billion ($840 million) European Commission fine rescinded since it’s ‘totally not doing that abusive practices thing anymore, guys. Honestly.’
