Meta moves Delhi HC against CCPA’s Rs 10 lakh fine, says Facebook Marketplace is not an e-commerce platform

Meta Platforms on March 18 moved the Delhi High Court (HC) against a consumer watchdog order imposing a Rs 10 lakh penalty over alleged unauthorised listings of walkie-talkies on Facebook Marketplace, arguing the platform is not an e-commerce service.

The case comes after India’s Central Consumer Protection Authority (CCPA) penalised Meta in January, saying the company violated consumer protection and IT rules by allowing listings of regulated devices without mandatory disclosures.

Appearing for Meta, senior advocate Mukul Rohatgi told the court that Facebook Marketplace functions only as a “notice board” and does not facilitate commercial transactions, according to PTI.

“We are not providing virtual Khan Market. This is a notice board meant only for Facebook users. We are not a shop. No commercial sales are allowed. No consideration is charged. We don't charge anybody,” Rohatgi said, PTI reported.

“The platform doesn't charge anything or provide any mechanism to buy or sell,” he added.

Justice Purushaindra Kumar Kaurav questioned the maintainability of the plea and asked Meta to explain why the order could be considered without jurisdiction. The court also asked why the matter should not be taken to the National Consumer Disputes Redressal Commission.

The court listed the matter for further hearing on March 25.

In its petition, Meta said Facebook Marketplace is a free service for individuals to buy or exchange goods in a personal capacity and does not allow businesses or charge commissions. It argued the CCPA had wrongly treated the platform as an e-commerce intermediary.

The company also said the regulator’s interpretation could expand e-commerce rules to “virtually every digital platform,” including online forums and classified listings, placing compliance burdens on ordinary users.

The CCPA, in its January 1 order, had directed Meta to ensure that products requiring statutory approvals, including walkie-talkies, are not listed without compliance and to conduct periodic self-audits of listings.

The watchdog had taken suo motu cognisance of what it described as large-scale illegal listings of walkie-talkies across platforms, identifying more than 16,000 non-compliant listings and issuing notices to multiple e-commerce companies, including Amazon, Flipkart and others.