South Korea Regulator May Sanction Meta Over Facebook and Instagram Marketplaces: Report

By Trisha Andrada

Mar 08, 2024 09:15 AM EST

Meta might be penalized by South Korea's antitrust office for allegedly failing to protect local consumers on its Facebook and Instagram marketplaces against fraudulent transactions.

Meta vs. South Korea

Citing unnamed sources, Yonhap News Agency reported on Friday that the Korea Fair Trade Commission (FTC) had concluded its probe for Meta's possible violations of the country's e-commerce law and had sent an examination report to the parent company of Facebook and Instagram late last year.

The agency's commissioners will convene to review the report and make a formal decision after studying it.

Read Also: South Korea Exploring Potential Sanctions for Businesses That Fail to Meet Shareholder Return Goals

This photograph taken on May 22, 2022 shows the logo of US multinational technology conglomerate Meta displayed on a booth ahead of the World Economic Forum (WEF) annual meeting in Davos.
(Photo : FABRICE COFFRINI / AFP via Getty Images)

Meta Fails to Establish Measures to Handle Consumer Issues in Facebook, Instagram Marketplaces

According to Yonhap, the FTC said Meta failed to establish mechanisms to handle consumer issues in the Facebook and Instagram marketplaces.

The agency noted that the company lacked measures to protect and provide a remedy to users of Facebook and Instagram marketplaces when complaints and disputes arose over sales transactions, as required by South Korean e-commerce law, Reuters reported.

The sources told Yonhap that the FTC believes that Facebook and Instagram, which are not registered as e-commerce businesses, qualify as e-commerce platform operators because of the markets they operate.

The report came after a consumer protection watchdog in South Korea said it was investigating the practices of major overseas shopping platforms such as Temu and Alibaba's AliExpress.

Read More: Meta CEO Mark Zuckerberg Seeks to Dismiss Personal Liability in Lawsuits Blaming Him for Kids' Social Media Addiction

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