A multistate coalition led by New York threw its support behind a US regulator seeking to block Meta Platforms Inc.’s acquisition of virtual-reality app Within Unlimited.
(Bloomberg) — A multistate coalition led by New York threw its support behind a US regulator seeking to block Meta Platforms Inc.’s acquisition of virtual-reality app Within Unlimited.
The Federal Trade Commission sued in July to stop the deal on antitrust grounds. In a court filing, 25 attorneys general said Meta has an anticompetitive history of buying up rivals in a market instead of building its own product to compete for business.
Meta has called the FTC’s suit ill-conceived, saying the agency’s claims about competition in the virtual reality space are based on “pure speculation.”
New York Attorney General Letitia James was joined in the filing by Massachusetts, Mississippi, Oregon and Rhode Island, among others — along with California, home to Menlo Park-based Meta, the parent of Facebook and Instagram.
The acquisition “would eliminate competition in the virtual reality fitness space at a critical moment in the development of this market,” California Attorney General Rob Bonta said in a statement.
The challenge to Meta’s proposed acquisition is indicative of the FTC’s stepped-up enforcement agenda under Chair Lina Khan, who was named by the Biden administration. The antitrust agency has faced significant criticism from Congress and antitrust advocates for allowing the biggest tech companies to acquire startups that might grow into rivals.
Meta has made a number of acquisitions, most of them small, to bolster its offering in virtual and augmented reality. Chief Executive Officer Mark Zuckerberg believes that in the future, the company will popularize a metaverse — a more immersive version of the internet, where people can populate an alternative virtual world to go shopping, go to work and see friends.
Within’s Supernatural is a subscription fitness service where users can work out or meditate to music in immersive environments.
Meta representatives didn’t immediately respond to a request for comment.
The filing was reported earlier by Reuters.
Read More: Meta’s Zuckerberg to Testify in FTC Merger Challenge to VR Deal
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