August 8, 2022
US FTC sues to block Meta from achieving Metaverse supremacy

US antitrust regulator, the Federal Trade Commission (FTC), has filed a lawsuit seeking to block Meta (formerly Facebook) from acquiring Unlimited, the maker of VR fitness app Supernatural, saying the transaction would take the internet giant to conclude. will allow. virtual reality space. The government agency, led by new president Lena Khan, which has been a vocal critic of corporate monopolies, alleges that the proposed acquisition by Meta, led by CEO Mark Zuckerberg, is illegal, as the company is already a major player within the VR ecosystem. . ,

The complaint alleges that Meta, the parent company of Facebook, Instagram and WhatsApp, could have created its own VR app to compete in the space, but is limiting the competition to buy out a potential competitor. Less innovation, less quality. , higher prices and fewer consumer choices.

FTC lawsuitThe against the company and CEO Mark Zuckerberg, broadly targeting Meta’s acquisitions of VR companies in recent years, accuses the company of launching a “campaign to win VR” in 2014 when it acquired the Oculus VR headset maker. did.

Meta first revealed the planned purchase in a deal last October that the information was assessed Over $400 million (approximately Rs 3,200 crore).

The FTC has now asked the court to temporarily halt the transaction, which Facebook plans to close on July 31. It also sought an injunction to stop the deal on grounds of antitrust.

It’s worth noting that CEO Mark Zuckerberg believes that in the future, the company will popularize a metaverse — a more immersive version of the Internet, where people can shop, go to work, and see friends as an alternative. Can populate the virtual world.

one in Press release“Instead of competing on merits, Meta is trying to buy its way to the top,” said John Newman, deputy director of the FTC Bureau of Competition. Meta already has the best-selling virtual reality fitness app, and it has There’s also the potential to compete. More closely with the popular Supernatural app within. But Meta chose to buy out the market position rather than earn it on merit. It’s an illegal acquisition, and we’re all chasing reasonable relief. will do. “

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