Shares of e-commerce company eBay Inc (NASDAQ:EBAY) are trading higher on Wednesday after Meta Platforms Inc. (NASDAQ:META) said it is rolling out a new test that will integrate listings from eBay directly on Facebook Marketplace.
This initiative will initially launch in Germany, France, and the U.S.
Through this collaboration, eBay sellers will gain access to a wider audience on Facebook, while Marketplace users will have the opportunity to explore an expanded selection of products from eBay's vast network.
Transactions will still be completed through eBay, maintaining the integrity of each platform's ecosystem.
By merging listings from two major platforms, Facebook Marketplace aims to enhance user experience while allowing eBay sellers to tap into Facebook's extensive user base.
Also Read: NVIDIA Unveils AI-Powered Digital Twin Tech For Warehouse Operations
This move is in response to European Commission's recent decision that Facebook Marketplace hindered competition in the European Union's online marketplace sector.
EU regulators contended that Facebook's parent company is linking its free Marketplace services with the social network to disadvantage its competitors.
Meta continues to appeal the ruling, highlighting that it built Facebook Marketplace to meet consumer demand and provide a new choice among European buyers.
Facebook Marketplace was launched in 2016 to provide an easy-to-use way to discover, buy, and sell items at no charge. Despite the European Commission's claims, Meta asserts that no evidence of harm to competitors exists, pointing to the ongoing success of other major players such as eBay and Leboncoin.
Price Action: EBAY shares are trading higher by 11.8% at $70.66 at the last check Wednesday.
Read Next:
- Microsoft Bets Big On India's AI Future With $3B Investment
Image via Shutterstock.