Ebay shares rise as Meta allows listings on Facebook Marketplace

stocks eBay It rose 8% on Wednesday Meta said it will allow some listings to appear on Facebook Marketplace, its popular platform that connects consumers for local pickup and more.

EBay shares hit their highest level since November 2021.

Meta said the rollout will begin testing 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. release.

The partnership could boost eBay’s marketplace business, which has struggled to compete with e-commerce rivals like eBay. Amazon, WalmartTemu and even Facebook’s own marketplace platform that allows users to buy and sell things.

EBay has recently embraced niche categories such as collectibles and luxury goods to try and keep buyers and sellers returning to its site. CEO Jamie Iannone He told CNBC in an October interview The site, known for its used and refurbished goods, has been flocking to the site as shoppers look for discounts amid a bleak 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 tying its Marketplace product to the main Facebook app.

The Commission said at the time that Meta’s integration of Marketplace with Facebook could mean competitors are effectively “hidden” given the platform’s distribution capabilities. Facebook has more than 3 billion users worldwide.

The commission also said that Meta imposes “unfair trading conditions” on other online classified ad service providers that advertise on its platforms, particularly Facebook and Instagram. It added that these terms allow Meta to use data from other advertisers to benefit Marketplace.

Meta appealed the decision at the time, saying it “ignored the realities of the evolving European market for online classifieds services”.

“While we disagree and continue to appeal the European Commission’s decision regarding Facebook Marketplace, we are working quickly and constructively to create a solution that addresses the points raised,” the company said Wednesday.

EBay touted its integration with Facebook Marketplace as a way for the e-commerce site to “increase exposure to our sellers’ listings on and off eBay as part of our strategy to attract buyers and deepen customer loyalty.”

Facebook in 2023 announced a similar partnership with Amazon allows users to view and purchase products without leaving the app.

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— Additional reporting by CNBC’s Annie Palmer.