Ebay shares soar as Meta allows listing on Facebook Marketplace

Actions eBay rose by 8% on Wednesday. Meta said it would allow some listings to appear on Facebook Marketplace, its popular platform that connects consumers with local grocery picks and more.

EBay shares hit their highest level since November 2021.

The rollout will begin with 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, Meta reported in liberation.

The partnership could provide a boost to eBay’s marketplace, which has struggled to compete with e-commerce rivals such as Amazon, WalmartTemu and even Facebook’s own trading platform, which allows users to buy and sell goods.

EBay has recently embraced niche categories like collectibles and luxury items to try to keep buyers and sellers coming back to its site. CEO Jamie Iannone told CNBC in an October interview that shoppers flocked to the site, known for its used and refurbished goods, looking for bargains in a shaky 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 a Marketplace product to Facebook’s main app.

At the time, the commission said that Meta Marketplace’s merger with Facebook could mean that competitors are effectively “excluded” given the reach of the platform’s distribution. Facebook has more than 3 billion users worldwide.

The commission also said that Meta imposes “unfair trading conditions” on other online ad service providers that place ads on its platforms, particularly Facebook and Instagram. He added that the terms allow Meta to use data it receives from other advertisers to benefit Marketplace.

At the time, Meta appealed the ruling, saying it “ignores the realities of Europe’s thriving online advertising market.”

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

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

Facebook in 2023 announced a similar partnership with Amazon, which allows users to browse and buy products without leaving the app.

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— Additional reporting by CNBC’s Annie Palmer.