The Federal Trade Commission has filed a lawsuit against Meta.
Meta is trying to acquire a virtual-reality company called Within. The FTC said that three out of five Commissioners voted in favor of the lawsuit.
Meta is interested in a virtual reality app. The deal to buy Within was announced in October of 2021.
Meta would create a monopoly in the virtual reality fitness market if it were allowed to buy Within according to the FTC.
Meta's proposal to buy Within was a way to eliminate competition, according to the FTC.
The FTC Bureau of Competition deputy director said that Meta was trying to buy its way to the top.
The FTC's case was built on "ideology and speculation," according to a Meta spokesman.
The FTC is sending a chilling message to anyone who wants to innovate in virtual reality, by attacking this deal in a 3-2 vote.
At a sensitive time for Meta. The company's revenue dropped for the first time in its history, and it spent more money on Reality Labs than any other company.
The division will lose money for the next three to five years because Meta has sunk billions into it.
The company will "steadily reduce head-count growth over the next year" according to the CEO.
The period demands more intensity and I expect us to get more done with less resources.
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