Meta

Meta Sued By FTC As The Latter Is Not In Favor Of Metaverse Expansion

  • The FTC has sued Meta, the parent firm of Facebook, over the acquisition of VR app maker Within in a United States court
  • The regulator has issues when it comes to the metaverse expansion that the firm has planned over the past few months

The parent company of the Facebook and Instagram social media apps, Meta Platforms, is seeing constant scrutiny from regulatory bodies in the United States, and the most recent is the Federal Trade Commission (FTC). 

Meta’s plan to acquire Los Angeles-based VR app maker Within might go to hold as FTC sued the former to block the acquisition. The regulatory body filed a lawsuit against Meta Platforms in the United States District Court for the Northern District of California to halt the company’s announced acquisition of Within.

The parent company of the two of the most popular social media platforms, Meta is also a big name in the virtual reality and metaverse space. In fact, FTC claims that Within’s strategic acquisition by Meta could further strengthen its position in the sectors, which can create a monopoly or result in Meta controlling the sector entirely.

“Meta would be one step closer to its ultimate goal of owning the entire ‘metaverse.'”

The filing alleges.

The agency claimed in a statement that Meta is purchasing the company behind the top VR fitness app rather than creating its own competing program in an effort to limit competition from independent studios. In a 3-2 vote, the commission decided to file suit to stop the deal.

According to the agency, the acquisition will “[dampen] future innovation and competitive rivalry,” infringing on antitrust laws. The FTC also made a note of Meta’s ownership of Beat Games, the company behind the well-known virtual reality game Beat Saber, which some people use as a fitness app. Similar claims were made on how owning both studios would hinder and limit innovative competition.

On the other hand, Meta dismissed FTC’s claims and said that Within’s acquisition would “inject new investment into the VR fitness space.” Meta VP and associate general counsel Nikhil Shanbhag said that the case is based on “ideology and speculation, not evidence.”

“The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible,”

he added.

Major industry experts in the crypto space have expressed their concern about Meta’s plans to develop what they claim will be a centralized walled garden rather than an open and interoperable metaverse that invites and accommodates numerous platforms. Yat Siu, the founder and executive chairman of the company behind The Sandbox, Animoca Brands, even called Meta a “threat” to an open metaverse in the past.

Notably, after the announcement regarding the purchase of Within, several members of the Metaverse community believed that Meta would now have strong VR support as Within, which is behind the popular fitness app Supernatural, is known for its versatility and creations

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Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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