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According to media reports, the South Korean regulator may impose sanctions on Meta for its marketplace platform

SEOUL (Reuters) – Korea’s antitrust agency will consider imposing sanctions on Meta Platforms for allegedly failing to protect some users of online trading platforms run by Facebook and Instagram from fraudulent transactions, news reports said on Friday.

Korea’s Fair Trade Commission (FTC) investigated possible violations of the country’s e-commerce law and sent an investigation report to Meta late last year, Yonhap news and the Dong-a Ilbo newspaper reported, citing anonymous sources.

The report is a step before agency commissioners meet to consider the findings and formally decide on the appropriations.

The agency accused Meta of failing to implement appropriate measures to protect and provide remedies to users of Facebook and Instagram Marketplaces in the event of disputes over sales transactions, as required by e-commerce outlets, Yonhap said.

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

Meta did not immediately respond to a request for comment.

Although Facebook and Instagram are social media platforms and are not registered as e-commerce companies, the markets in which they operate require them to comply with the law, Yonhap said.

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

(Reporting by Jack Kim; Editing by Ed Davies)