FTC Sues To Stop Meta From Expanding 'Virtual Reality Empire' Via Acquisition
The FTC has filed a lawsuit against Meta —formerly known as Facebook— to stop it from buying a startup focused on VR apps over claims the acquisition is anticompetitive.
“Instead of competing on the merits, Meta is trying to buy its way to the top,” said the FTC’s Bureau of Competition Deputy Director John Newman in the announcement(Opens in a new window).
Back in October, Meta announced it planned on buying Within, a company behind several VR-based apps, including the workout-focused Supernatural. But on Wednesday, the FTC filed a complaint(Opens in a new window) in a US district court to stop the acquisition.
The federal regulator says Meta is already “a key player at each level of the virtual reality sector.” The commission cited the company’s popular Quest VR headsets, Meta’s existing control of a major virtual reality app store, and its past acquisitions of several VR game studios, including the maker of the hit title Beat Saber(Opens in a new window), a rhythm game that's similar to Within's own Supernatural app.
The FTC is now concerned that the company is trying to “conquer” the market and expand its “virtual reality empire” through acquisitions. “If Meta is allowed to buy Within, that competitive pressure will slacken. That lessening of competition violates the antitrust laws,” the commission said.
According to the FTC, Meta should just compete directly against Within’s Supernatural app through titles such as Beat Saber. “The two companies (Meta and Within) currently spur each other to keep adding new features and attract more users, competitive rivalry that would be lost if this acquisition were allowed to proceed,” the FTC added.
The FTC voted 3 to 2 in deciding to file the lawsuit. The regulator is
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