Khan-led FTC declines to appeal court approval of Meta acquisition of VR company

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The Federal Trade Commission will not appeal a court decision to allow Meta to acquire a virtual reality fitness developer, the first significant admission of failure for the agency's new aggressive approach to antitrust.

The Lina Khan-led regulatory agency said on Monday that it would not pursue the appeal of its case against Meta's acquisition to buy Within, according to Reuters. However, the agency said it intends to pursue the case through an FTC administrative judge. That case is scheduled for its first hearing on Feb. 13.The decision not to appeal the case appears to reflect the FTC's realization of its first legal loss after staff opposed the decision.

Meta attempted to acquire Within in October 2021 as part of its more extensive efforts to rebrand as a"metaverse" company. The FTC blocked the purchase in July and claimed that Meta was establishing a monopoly over the virtual reality market through the acquisition.While the decision was supported by the majority of commissioners, staff members at the FTC were hesitant on the matter and opposed the lawsuit.

The decision may affect the FTC's attempt to block Microsoft's effort to acquire the gaming company Activision Blizzard for nearly $69 billion. The agency is also considering a suit against Amazon.

 

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