The U.S. Federal Trade Commission (FTC) sued Meta to prevent “owning” metaverse sectors.
The FTC filed a lawsuit on July 27 to block Meta’s recent attempt to acquire virtual reality app maker Within.
FTC wants to encourage competition
Fair Trade Commission Filing The committee indicated that it believes Meta’s acquisition of Within is another move by the company to manage the space.
The social media giant has been trying to expand its footprint in VR’s “Metaverse” since rebranding to Meta, according to filings.
Meta will be one step closer to the ultimate goal of owning the entire ‘Metaverse’.
Within Unlimited is the developer of Supernatural, a popular virtual reality app. Meta announced that he plans to acquire the VR company in October 2021, a deal he expected to close by August.
The FTC said the company, led by Mark Zuckerberg, already has a highly successful virtual reality empire and plans to expand it by illegally acquiring valuable fitness apps for VR users.
FTC Deputy Director of Competition John Newman said:
“Meta already had a best-selling virtual reality fitness app, with the ability to compete even more closely with Within’s popular Supernatural app. We have elected to purchase the position, which is an illegal acquisition and we will take all appropriate remedies.”
The commission’s lawsuit hopes to increase consumer choice and encourage innovation, rather than buy out competition and narrow the market.
Stakeholders Criticize Meta
Meanwhile, lawsuits come at a time when meta criticized Because you tried to control the entire metaverse space.
Stakeholders in the field have warned that Meta intends to develop a centralized system.
The company reportedly targeted rival staff to build the Metaverse.
meta disagrees
However, meta Contrary to the FTC’s position, It calls it a case “based on ideology and speculation rather than evidence.”
The company denied having an anMy product that offers a similar experience to Supernatural, calling the acquisition a way to inject new money into the sector.
Nikhil Shanbhag, Attorney at Law Firm, said:
The idea that this acquisition will lead to anti-competitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is utterly discredited.
