Stop Meta Expansion – The Federal Trade Commission (CFT) files a complaint against Meta. Indeed, the company will have to stop swallowing up innovative companies in the field of virtual reality. The objective is to prevent him from reigning over the metaverse.
A vote of three against two, to the detriment of the parent company of Facebook and Instagram. The Federal Trade Commission makes block against a Meta. The social media giant would like take control of the sector virtual reality for fitness and the metaverse in general, devouring millions of the most innovative players in the industry.
Throwback to October last year: Meta reveals plans tobuy VR Within, the studio that developed the popular fitness app, Supernatural. The company would be ready to put on the table $400 millionto absorb Within.
Prudential measures routine in this type of operation or a presentiment of a future outcry from the CFT, the company preferred to postpone the closing date of the operation for the 1er august of this year.
If the transaction does take place, its conclusion risks being postponed once again. Indeed, the majority of the members of the Commission voted in favor of legal action to block purchase. A complaint has been filed in this regard. The United States District Court for the Northern District of California will hear the case.
Abuse of a dominant position or support for the sector?
The Federal Trade Commission accuses Meta of wanting stifle competition, by buying the independent studios. The regulator wants Facebook’s parent company launches its own initiativesand cease its actions which would aim to ” buy your place at the top “, taking up the words of John Newmandeputy director of the CFT’s competition office.
The Commission recalled that Meta had already acquired Beat Games, the developer of the popular virtual reality game Beat Saber, which can also double as a fitness app. The regulator thus considers that it cannot give the green light to the purchase of Within. He wants to preserve innovation and prevent Meta from crushing the competition.
The communication war precedes the trial to come, if it actually takes place. Rather, Meta describes this purchase of Within as an injection of new investments in the field of virtual reality for fitness. The company also rejects the evoked analogies, between Supernatural and Beat Saber.
The CFT’s charges are said to be based on ” ideology and speculation, not evidence “, according Nikhil ShanbhagMeta VP and associate general counsel.
If the Federal Trade Commission fails in its attempt to prevent Meta from dominating the metaverse, the $2.8 billion in metaverse department losses of the company moderate the ambitions of the social media giant?
The race for crypto investment and the metaverse is on! Even if some have taken a good head start, it is still possible to catch up. To do this, register quickly on the PrimeXBT platform (commercial link).