Federal Trade Commission dropped the antitrust complaint against Meta's purchase of virtual reality startup company Within Unlimited. This officially closed the agency's case after filing two complaints in federal court and its in-house court.
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This photograph taken on October 28, 2021 shows the META logo on a laptop screen in Moscow as Facebook chief Mark Zuckerberg announced the parent company's name is being changed to "Meta" to represent a future beyond just its troubled social network.
Withdrawing Complaint
Meta reached its final victory in purchasing virtual reality company Within Unlimited after the Federal Trade Commission (FTC) withdrew its remaining efforts to block the acquisition. The agency abandoned the complaint after U.S. District Judge Edward Davila denied its request to halt the purchase.
The federal judge's decision did not directly affect FTC's request in its in-house court, but it had been unclear if the agency would still push forward with the administrative case. The Wall Street Journal reported that antitrust enforcers abandon such litigation once a federal judge denies a request.
Davila's ruling allowed Meta to close the deal on February 10th, but FTC could have continued its case in administrative court and fought to unwind it. But it was reported that the agency voted to withdraw and end the case.
Bloomberg reported that this decision is the first major loss for FTC Chair Lina Khan. President Joe Biden appointed her to deal with antitrust enforcement. Compared to her predecessors, Khan's approach has taken a more aggressive approach to cases as the agency focused on tech giants.
The administrative case and the federal court litigation were both watching this case very closely. While this was a loss for FTC, this decision is a win for Meta. A spokesperson from the company stated, "We're excited that the Within team has joined Meta, and we're eager to partner with this talented group in bringing the future of VR fitness to life."
Blocking the Acquisition
In July 2022, FTC sued Meta to block the Within Unlimited acquisition that costs $400 million. The startup company makes popular games, including Supernatural, that lets users take virtual-reality fitness classes.
Chief Executive Officer Mark Zuckerberg has been clear regarding his interest in the app, hence the acquisition. Especially since he made a big bet on virtual reality worlds or metaverses, one of his strategic moves in 2021 as Facebook rebranded as Meta.
FTC claimed that this acquisition would lessen the competition in the market for virtual reality fitness products. This case was the first among the big four technology companies (Meta, Alphabet, Apple, & Amazon).
Also Read: Meta Verified Launches in Australia, New Zealand
Zuckerberg testified for this acquisition last December and confirmed his attendance in October. He stated that Within Unlimited, joining Meta can help them pioneer the category and spur other companies.
Through this acquisition, Within Unlimited will hold the platform together rather than build every application to itself. While the company works aggressively for its Metaverse, the CEO stated that it also focuses on communication and social interaction.
Related Article: Mark Zuckerberg to Testify in an FTC Case for Facebook's Acquisition of VR Content Maker 'Within Unlimited'
