The FTC is trying to stop an acquisition of a smaller tech company.
The FTC is trying to stop Meta from acquiring Within. Supernatural VR is a popular virtual reality app. Meta already owns Beat Saber, which is one of the most popular virtual reality workout games.
The FTC said that allowing Meta to acquire Supernatural would eliminate beneficial rivalry between Meta's Beat Saber app and Within's Supernatural app.
Meta is interested in dominating the virtual reality space. The idea of the "metaverse" itself has been closely associated with all things Meta and Facebook over the past year.
Meta doesn't think of its tactics as a monopoly. In a lengthy statement posted to its website, the company defended itself against a lawsuit.
“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. By attacking this deal in a 3-2 vote, the FTC is sending a chilling message to anyone who wishes to innovate in VR. We are confident that our acquisition of Within will be good for people, developers, and the VR space.”
In the last few years, seeing the FTC oppose a tech acquisition has been rare. In the past year, Microsoft and Sony have bought other companies, with less scrutiny from the FTC. It is possible that one video game company buying another doesn't cross as many lines as the company behind the main virtual reality access point.
It's likely not how Meta wanted this week to go, with the lawsuit arriving just 24 hours after the price hike.
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