US files a lawsuit to prevent Facebook from purchasing a VR company financed by Temasek
U.S. capital (REUTERS) - On Wednesday, July 27, the US Federal Trade Commission (FTC) requested a court order to prevent Facebook parent Meta Platforms from acquiring VR content producer Within Unlimited.
In a request for a temporary restraining order and preliminary injunction made on Wednesday in federal court in San Francisco, the FTC referred to Facebook as a "global technology behemoth," noting that it is the owner of well-known applications like Instagram, Messenger, and WhatsApp. It also claimed that Facebook's "campaign to conquer VR" began in 2014 when it purchased the maker of VR headsets Oculus.
The FTC contended that the acquisition of Within by Facebook would "tend to create a monopoly" in the market for VR-specific fitness apps, and the FTC's request to seek an injunction was approved by a vote of three to two. inside has
The 2014-founded company Within produces creative VR content. As "the foremost destination for cinematic virtual reality," it describes itself.
According to its website, investors in the company include Temasek of Singapore, the venture capital firm Andreessen Horowitz, and film studios like Disney, 21st Century Fox, Annapurna Pictures, and Legendary Pictures .
The 2014-founded company Within produces creative VR content. As "the foremost destination for cinematic virtual reality," it describes itself.
According to its website, investors in the company include Temasek of Singapore, the venture capital firm Andreessen Horowitz, and film studios like Disney, 21st Century Fox, Annapurna Pictures, and Legendary Pictures.
In October 2021, Facebook agreed to purchase Within for an unknown fee.
In 2020, the FTC separately sued Facebook for antitrust violations.
Meta said in a statement that it dissented with the FTC's analysis of the request.
" The FTC's case is grounded on testament and enterprise, not substantiation. The idea that this accession would lead toanti-competitive issues in a dynamic space with as important entry and growth as online and connected fitness is simply not believable," the company said.
" We're confident that our accession of Within will be good for people, inventors and the VR space," it added.
The FTC argued in its complaint that the planned accession was a way for Meta to dominate VR, a new and fast- growing part of the Internet. VR assiduity earnings are anticipated to grow fromUS$ 5 billion(S$6.9 billion) last time to further thanUS$ 12 billion in 2024, the FTC said in its complaint.
Meta formerly has the best- dealing VR headset, the Quest 2, and controls a Meta Quest Store with hundreds of apps. It has bought game- makers like Beat Games, Sanzaru and Ready At Dawn Studios, among others, the complaint said.
" Meta formerly owns a best- dealing virtual reality fitness app, and it had the capabilities to contend indeed more nearly with Within's popular Supernatural app," said Mr John Newsman, director of the FTC's Bureau of Competition, in a statement.
" But Meta chose to buy request position rather of earning it on the graces. This is an illegal accession, and we will pursue all applicable relief."
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