The US Federal Trade Commission (FTC) has defendant Meta to stop him from “owning” the metaverse sector.
The FTC filed the lawsuit on July 27 to stop Meta’s recent attempt to acquire virtual reality app maker Within.
FTC wants to promote competition
the FTC presentation showed that the commission believes Meta’s purchase of Within is another move by the company to control the space.
According to the filing, the social media giant has been trying to expand its footprints in the VR “metaverse” ever since it changed its name to Meta.
Meta would be one step closer to his ultimate goal of owning the entire ‘metaverse’.
Within Unlimited is the developer of the popular virtual reality app, Supernatural. Meta had announced plans to buy the VR company in October 2021, with the deal scheduled to end in August.
The FTC said the Mark Zuckerberg-led company already has a very successful virtual reality empire and plans to expand it by illegally acquiring a valuable fitness app for VR users.
FTC Competition Bureau Deputy Director John Newman said:
“Meta already owns a best-selling VR fitness app, and had the ability to compete even more closely with Within’s popular Supernatural app. But Meta chose to buy a market position instead of winning it on its own merits. This is an illegal takeover, and we will seek all appropriate remedies.”
The commission’s lawsuit wants to increase consumer choice and encourage innovation rather than buy competition and shrink the market.
Actors criticize Meta
Meanwhile, the lawsuit comes at a time when Meta has come under fire for trying to take control of all of metaverse space.
Stakeholders in the space have warned that Meta intends to develop a centralized and controlled system.
Reports had revealed that the company targeted the rival’s staff to build its metaverse.
goal does not agree
However, Target disagreed with the FTC’s opinions, calling it a case “based on ideology and speculation rather than evidence.”
The company denied having a My product that offered a Supernatural-like experience, calling the acquisition a way to inject new funds into the sector.
Nikhil Shanbhag, the firm’s lawyer, said:
The idea that this acquisition would lead to anti-competitive results in a dynamic space with as much entry and growth as online and connected fitness is simply not credible.
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This post The FTC wants to prevent Meta from “owning the metaverse”
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