Ebay shares soar as Meta allows listings on Facebook Marketplace

Actions of eBay rose 8% on Wednesday as Meta said it will allow some listings to appear on Facebook Marketplace, its popular platform that connects consumers for local item pickups and more.

eBay shares reached their highest level since November 2021.

The rollout will begin with a test 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 said in a liberation.

The partnership could provide a boost to eBay’s marketplace business, which has struggled to compete with e-commerce rivals such as Amazon, WalmartTemu is also Facebook’s marketplace platform that allows users to buy and sell items.

EBay has recently embraced niche categories like collectibles and luxury goods to try to keep buyers and sellers coming back to its site. CEO Jamie Iannone he told CNBC in an October interview that buyers come to the site, known for its used and refurbished goods, while looking for discounts in a rocky 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.

At the time, the Commission said that the aggregation of Marketplace Meta with Facebook could mean that competitors are effectively “excluded” given the distribution reach of the platform. 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 who advertise on its platforms, particularly Facebook and Instagram. He added that these conditions allow Meta to use data generated by other advertisers to benefit Marketplace.

Meta appealed the decision at the time, saying it “ignores the reality of the thriving European market for online classifieds services”.

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

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

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

WATCH: Will AI stocks grow further in 2025? Nvidia investor shares his perspective

Additional reporting by CNBC’s Annie Palmer.