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FTC Sues to Block Meta From Purchasing VR Company Within
The Federal Trade Commission is moving to block Meta from purchasing VR company Within, calling it an “illegal acquisition.”
Lawmakers and regulators are becoming more critical of acquisitions in the tech industry, especially when it involves a larger, market-dominating company buying up a smaller rival. Within currently makes the popular Supernatural fitness app, a category Meta clearly wants a foothold in.
The FTC is concerned the acquisition is just the latest example of Meta trying to extend its dominance in the VR market through buyouts rather than fair competition.
“Instead of competing on the merits, Meta is trying to buy its way to the top,” said FTC Bureau of Competition Deputy Director John Newman. “Meta already owns a best-selling virtual reality fitness app, and it had the capabilities to compete even more closely with Within’s popular Supernatural app. But Meta chose to buy market position instead of earning it on the merits. This is an illegal acquisition, and we will pursue all appropriate relief.”
The complaint also alleges that Meta’s attempt to purchase Within will result in less competition than if the company was willing to invest the time and resources necessary to create its own app.
The complaint alleges that Meta is a potential entrant in the virtual reality dedicated fitness app market with the required resources and a reasonable probability of building its own virtual reality app to compete in the space. But instead of entering, it chose to try buying Supernatural. Meta’s independent entry would increase consumer choice, increase innovation, spur additional competition to attract the best employees, and yield other competitive benefits. Meta’s acquisition of Within, on the other hand, would eliminate the prospect of such entry, dampening future innovation and competitive rivalry.
FTC Sues to Block Meta From Purchasing VR Company Within
Staff
from WebProNews https://ift.tt/oaWTR73
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