The U.S. Federal Trade Commission (FTC) entered Wednesday (27), with a complaint in federal court To prevent Facebook parent company Meta from acquiring virtual reality (VR) company Within Unlimited, which owns flagship fitness app Supernatural.
In a press release, the FTC argues that if Meta creates its own “private virtual reality fitness app market,” it will drive innovation and consumer choice. However, the supposed acquisition of Inside reduces competition and “buy your way to the top”According to John Newman, the commission’s deputy director.
The process, which was passed 3-2 by a now-majority Democratic committee, marks the first major event in the government’s presidency. Professor Lina Khan is a staunch critic of Big Techs and known in the US as an “antitrust lady”.
What did the meta say?
In a post on the Facebook Blog, Nikhil Shanbhag, Meta’s Vice President and Deputy General Counsel for Competition and Regulation, claims that the FTC case is based solely on ideology and speculation. According to the executive, in a dynamic scenario with a lot of growth and constant entry, as in the case of online and connected fitness, there is no way to speak of anti-competitive results.
Additionally, the note adds that the FTC’s claims have no legal basis, and that under US law, the regulator would have to prove that a purchase would “significantly reduce competition.” before blocking an already signed agreement. Shanbhag says Meta’s goal is to inject new investment into the VR fitness space and improve the Quest platform.
Meta is confident that “our acquisition of Intain will be good for people, developers and the VR space.” But first he will have to face Khan’s wrath.
Source: Tec Mundo
