Meta files to dismiss FTC complaint over acquisition of VR fitness company Within

Meta asked the FTC to dismiss their complaint about its acquisition of Within.

Supernatural is a rhythm game-turned-workout app that is a legitimate use of virtual reality. It makes sense that Meta would want to take over the company, but the FTC is concerned that it could be an anticompetitive acquisition.

The agency wrote in July that Meta and Mark Zuckerberg were planning to expand their virtual reality empire with this attempt to illegally acquire a dedicated fitness app that proved the value of virtual reality to users.

Meta (Facebook) is buying Within, creators of the ‘Supernatural’ VR fitness app

Despite the FTC's complaint, Meta asked the Northern District of California court to move forward with the deal.

The FTC argued that the acquisition would hurt competition. The agency wrote, "Meta already participates in this broader market with its Beat Saber app, as does Within with its premiumrival app Supernatural." The two companies currently spur each other to keep adding new features and attract more users, competitive rivalry that would be lost if this acquisition were allowed to go ahead. The FTC removed the allegations after filing a new complaint.

Some people just break a sweat because the game requires a lot of fast arm movement, but Beat Saber wasn't built with exercise in mind Both games are rhythm games.

Meta used the FTC filing to argue that the complaint shouldn't prevent the acquisition. It would be difficult for the FTC to force the merging companies to separate if Meta were to acquire Within.

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After abandoning its claim that Meta and Within competed for fitness consumers, the FTC only proceeds on the claim that Meta and Within could compete, and that the fear of such competition drives Within and others to compete more strenuously, according to Meta. Lawyers for the company argue that perceived potential competition has not stood up in court as a reason for blocking a vertical merger.

The FTC claims that generalized fear of possible entry by Meta is a spur to competition.

Meta spent over $10 billion in its Reality Labs division in the year 2021, but it hasn't seen a single dime in revenue. The company formerly known as Facebook showed off its high-end virtual reality headset at its developer conference.

Meta motion to be dismissed.