FTC challenges Meta acquisition of VR company in San Jose court

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Federal regulators will open their campaign to block Facebook parent Meta's acquisition of a virtual-reality company, with opening statements beginning Thursday in a San Jose courtroom.

In a landmark legal challenge to a Big Tech merger, the Federal Trade Commission has sued to prevent Menlo Park-based Meta's acquisition of Within Unlimited and its fitness app Supernatural, asserting it would hurt competition and violate antitrust laws.

Meta Platforms Inc. has been unsuccessful in its bid to have the case dismissed after arguing that the U.S. failed to prove that the virtual reality market is concentrated with high barriers to entry. After Meta argued that the lawsuit contained"nothing more than the FTC's speculation about what Meta might have done," the FTC revised its complaint in October to narrow the focus of its allegations.

Over the summer, FTC Chair Lina Khan and the other two Democratic commissioners voted to block the deal, with two Republicans going the other way. The Within case is part of a more aggressive stance by the FTC following its 2020 antitrust lawsuit against Facebook seeking remedies that could include a forced spinoff of Instagram and WhatsApp, or a restructuring of the company.Under Zuckerberg's leadership, Meta began a campaign to conquer virtual reality in 2014 with its acquisition of headset maker Oculus VR.

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FTC, Meta renew battle in federal court over acquisition of VR fitness app maker WithinThe FTC claims Meta will illegally extend its market power into the nascent metaverse market and that Meta “had the intentions to enter — and thus was a reasonably probable entrant into — the VR Dedicated Fitness App market,” according to a court filing.
Fonte: MarketWatch - 🏆 3. / 97 Consulte Mais informação »