In a regulatory showdown, South Korea’s antitrust agency contemplates imposing sanctions on Meta Platforms amid accusations of inadequate user protection on its Facebook and Instagram marketplaces. The Korea Fair Trade Commission (FTC) has reportedly investigated potential violations of the country’s e-commerce law and forwarded an examination report to Meta late last year, setting the stage for potential regulatory action.
While Facebook and Instagram primarily function as social media platforms, the marketplaces integrated into their operations bring them under the purview of e-commerce regulations. The FTC alleges that Meta failed to implement sufficient measures to safeguard users and provide remedies when disputes arose from sales transactions on these platforms.
The examination report represents a critical step before the FTC’s commissioners convene to deliberate on the findings and formally determine the appropriate measures. Despite inquiries, the FTC refrains from confirming the report, adhering to its policy of not commenting on ongoing investigations.
Meta, the parent company of Facebook and Instagram, is yet to respond to the reports and potential regulatory actions by the South Korean antitrust watchdog. The looming scrutiny raises questions about the responsibilities of major online platforms in ensuring the integrity of their marketplaces and protecting users against fraudulent transactions.
The development follows a broader initiative by South Korean consumer protection authorities, examining the practices of major overseas shopping platforms, including Alibaba’s AliExpress and Temu. As regulatory oversight intensifies, Meta faces a critical juncture in addressing concerns related to its marketplace operations in the South Korean market.
