F.T.C. Sues to Block Meta Virtual Reality Deal as It Confronts Big Tech
Summary
The move is a potential blow to Meta’s metaverse efforts and signals a shift in how the Federal Trade Commission is approaching tech deals. The antitrust lawsuit is the first to be filed under Lina Khan, the commission’s chair and a leading progressive critic of corporate concentration, against one of the tech giants. Ms. Khan has argued that regulators must stop violations of competition and consumer protection laws when it comes to the bleeding edge of technology, including virtual and augmented reality, and not just in areas where the companies have already become behemoths. He has poured billions of dollars into building products for virtual and augmented reality, betting that the immersive world of the metaverse is the next technology frontier. John Newman, the deputy director of the F.T.C.’s Bureau of Competition, said the agency acted on the Within deal because Meta was “trying to buy its way to the top.” The company already owned a best-selling virtual reality fitness app, he said, but then chose to acquire Within’s Supernatural app “to buy market position.” He called the deal “an illegal acquisition, and we will pursue all appropriate relief.” The F.T.C.’s vote to authorize the filing was split 3 to 2.