The FTC is putting limits on Meta's virtual reality ambitions with its lawsuit.
In Brief
Federal regulators have initiated a trial against Meta that will span three weeks, targeting the company's intended purchase of Within Inc., a VR fitness app.
The FTC argued that this acquisition could stifle competition by ensuring Meta's control over the VR realm.
The Biden administration has accused The U.S. antitrust agency is working to prevent Meta from taking over VR app developer Within Inc., as Zuckerberg is accused of trying to corner that market.
In July, the FTC filed a formal complaint against Meta's proposal to acquire Within, citing concerns that this merger would reinforce the company’s monopolistic grip on VR fitness apps. As a result, the FTC sought an injunction to halt the transaction.
FTC lawyer Abby Dennis pointed out that by acquiring Within, Meta aimed to attract a broader audience of VR users, including fans of Supernatural, Within's popular workout app. She noted that Within would significantly enrich Meta's existing user base, which skews toward younger male gamers.
Legal representatives for Meta and Within contended that the FTC had not accurately depicted the competitive landscape. They argued that both companies are vying with various fitness solutions beyond just VR-focused offerings.
The court proceedings are set to continue until December 20. Additionally, the FTC has a separate lawsuit from 2020 seeking to unwind Meta's acquisitions of Instagram and WhatsApp, which were previously unknown markets much like the current landscape of VR and AR.
A ruling in favor of the government could severely hinder Meta's supremacy in the metaverse as well as in both virtual and augmented reality sectors.
Even after the harsh criticism Despite pressures from the federal government, Zuckerberg remains staunchly optimistic about the metaverse and maintains hope for the long-term potential of emerging technologies.
As Meta grapples with challenges posed by the Biden administration, Microsoft is also engaged in a legal struggle against the FTC to secure its acquisition of the video game giant Activision Blizzard. tries to prevent Please remember that the information shared on this site should not be interpreted as legal, tax, investment, or financial advice. It's crucial to invest only what you can afford to lose and consult a qualified financial advisor if you're uncertain. For more details, we encourage you to refer to the terms and conditions as well as the support resources from the relevant issuer or advertiser. MetaversePost strives to deliver precise and impartial information, but market dynamics can change without prior notice.
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