FTC moves to block Meta's purchase of 'Supernatural' VR workout app maker Within

The Federal Trade Commission has filed an antitrust suit against Meta in order to stop it from buying Within Unlimited, makers of the virtual reality workout app Supernatural. The agency accused the company of trying to illegally acquire a fitness app that proves the value of virtual reality to users.

According to the FTC, Meta is a key player in the virtual reality industry. Seven of the most successful developers and one of the best-selling apps of all time are what the company has. Beat Saber is likely referred to by the latter. The maker of that rhythm game was bought by Meta.

The deputy director of the FTC's Bureau of Competition said that Meta is trying to buy its way to the top. Meta already owns a best-selling virtual reality fitness app and it could compete with Within's popular Supernatural app. Meta bought the market position rather than earning it on the merits. This is an illegal acquisition and we will try to get relief.

The plan to buy Within was announced by Meta. The $400 million deal was being looked into by the FTC. Meta got into the virtual reality market when it bought the company.

Meta has the resources and the chance to enter the virtual reality fitness market by building its own app, according to the FTC. The approach would increase consumer choice, increase innovation, spur additional competition to attract the best employees, and yield other competitive benefits, according to the agency. The FTC claims that if Meta were to buy Within, it would violate antitrust laws.

The FTC's case is not based on 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 not believable according to a Meta spokesman. The FTC is sending a chilling message by attacking this deal. We are confident that our acquisition of Within will benefit people.

The move will hurt Meta's goal of becoming the leading metaverse player. The company has poured billions of dollars into the effort, but in recent months it has scaled back some of its ambitions by cutting costs and shelving plans for some devices that were supposed to hook into its metaverse The price of the Meta Quest 2 headset will be increased by $100 on August 1st. On the same day that Meta will report its earnings for the second quarter of 2022, news of the FTC blocking the Within acquisition came to light.