For 'Potential Competition,' Meta defends VR deal from FTC in court

December 09, 2022 By Jozeph P

(Image Credit Google)

The FTC is currently challenging Meta's Virtual Reality startup deal in court, and here's why. In order to prevent Meta from acquiring the virtual reality business named Within, the FTC sued the company in a federal courtroom in San Jose, California. The FTC has never taken legal action before a sale until it filed one against Meta, which has bought more than 100 smaller companies in the last ten years. The enormous metaverse that Meta is creating, which seeks to be a more immersive version of the internet where users may visit one another's virtual environment to shop, go to work, and visit friends, has been under construction for a while. According to reports, the FTC sued Meta over the deal in July, claiming that the company aimed to create a virtual reality monopoly similar to how Facebook acquired Instagram and WhatsApp to strengthen its position as the social networking market leader. [caption id="attachment_67149" align="aligncenter" width="1200"] Meta

Image credit: coinscreed[/caption] The government body filed a lawsuit against Meta to have those agreements nullified. But as of this writing, the matter is still pending. According to a report, Meta disputes the charges and maintains that their business decision was not as nefarious as the FTC alleges. The Federal Trade Commission and the antitrust division of the Justice Department have reportedly filed sudden lawsuits in an effort to stop corporate mergers and promote competition over the past few years, according to the reports. According to antitrust experts, the FTC's goal is to broaden the application of antitrust law, notably how it has been applied in the past against the largest tech corporations. Experts concur, though, that the FTC may find it challenging to prevail in the current lawsuit against Meta. According to experts, the FTC is using an unusual defense in this case by arguing that Meta's deal would hurt potential competition in a market for virtual reality products that could grow to be significant in the future. The FTC has already brought eight actions contesting business mergers, including Meta's.

By Jozeph P

Journalism explorer, tech Enthusiast. Love to read and write.

For 'Potential Competition,' Meta defends VR deal from FTC in court

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