In response to the European Commission’s recent $843 million fine against Meta for allegedly breaching EU antitrust rules by tying Facebook Marketplace to its social network Facebook, the tech giant has launched a Marketplace partner program that will show ads from rival marketplaces in the region.
After “imposing unfair trading conditions” on rival classified ad providers, according to the Commission, Meta's Facebook Marketplace Partner Programme will allow competing marketplaces in the European Economic Area (EEA) to distribute their ads on Marketplace.
Attempting to address the Commission's decision -- which Meta believes “ignores the market realities and will only serve to protect incumbent marketplaces from competition” -- the Silicon Valley-based company worked with eBay last month, inviting the marketplace to try out the program in Germany, France, and the U.S.
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“As we look to bring more utility to Marketplace users, and to meet the needs of young adults looking for sustainable items like clothing, shoes, and accessories, this test helps us explore how added inventory from trusted sellers like eBay can add value,” a Meta spokesperson said at the time.
Following the news of eBay's involvement in the program, Meta's share prices initially declined before rebounding, while eBay's stock shot up by 13% overnight – its highest level since October 2021.
The new program will allow Marketplace users based in EEA countries to see the listings of participating companies, with the option to complete their purchases on their third-party websites.
Eligible companies -- which, according to Meta, “must be an online classified ad service (consistent with the European Commission’s definition of that term) with available consumer-to-consumer listings in a European Economic Area country” -- will gain access to Marketplace's entire ecosystem, including its user base, its product discovery and recommendation systems, and a dedicated support team.
Meta believes that joining Marketplace -- which has about one billion monthly active users -- will increase traffic to its platforms and sellers, and help users better discover their inventory.
Upon joining the program, partners will have a period of fee-free integration to test the offering.
After that, Facebook will charge on a cost-per-click basis. Partner listings will appear on the Marketplace feed and search and will be “ranked neutrally with Marketplace listings,” Meta explains.