South Korea regulator may sanction Meta over marketplace, say media reports

According to press reports on Friday, South Korea’s antitrust commission is considering slapping fines on Meta Platforms for allegedly failing to shield certain users of Facebook and Instagram-operated online markets from fraudulent transactions.

Yonhap news and the Dong-a Ilbo daily, citing unidentified sources, stated that the Korea Fair Trade Commission (FTC) had looked into potential infractions of the nation’s e-commerce legislation and had sent an inspection report to Meta late last year.

The report is a prelude to the commissioners of the agency convening to deliberate on the results and formally determine appropriate action.

According to the agency, Meta did not take the necessary steps, as required of e-commerce outlets, to safeguard and compensate users of Facebook and Instagram marketplaces in the event that disputes emerged over sales transactions, Yonhap said.

The FTC declined to confirm the report citing its policy of not commenting on an ongoing investigation.

Meta did not immediately respond to a request for comment.

While Facebook and Instagram are social media platforms and are not registered as e-commerce businesses, the marketplaces they operate effectively require them to comply with the law, Yonhap said.

The news reports came after a South Korean consumer protection watchdog said it was reviewing the practices of major overseas shopping platforms, including Alibaba’s AliExpress and Temu.