In a suit that aims to block Meta Platforms’ acquisition of virtual reality fitness app developer Within Unlimited, the Federal Trade Commission (FTC) reportedly said Meta stopped its plans to build such an app itself — thereby stifling competition — while Meta said it never planned to develop a VR fitness app.
The two parties submitted their filings in a federal court Monday (Nov. 21), Bloomberg reported Tuesday (Nov. 22).
In the FTC filing, the agency said the acquisition would violate antitrust laws by reducing the number of competitors in the VR fitness app market.
The agency said Meta had hired Within’s head of product, leading Within to expect that Meta was bringing a product to market, that Meta had already developed a VR game and was looking to move into new markets, and that it had the engineers to do so.
Read more: Judge Denies Motion To Dismiss Sequoia Subpoena in FTC Meta Suit
In the Meta filing, the company said that two executives who would have had to approve such a project gave sworn testimony that they had not done so, that the idea of a VR fitness app had been discarded before moving beyond the discussion phase and that employees had determined that Meta couldn’t build such an app, according to the report.
In a statement provided to PYMNTS, a Meta spokesperson said the VR space is experiencing vibrant competition and that the company’s acquisition of Within “will be good for people, developers and the VR space.”
“As we have said from the beginning, the FTC’s case is based on ideology and speculation, not evidence,” the Meta spokesperson said. “We are ready to make our case before the Court.”
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI