Meta Chief Executive Officer Mark Zuckerberg will be testifying to a case by the Federal Trade Commission against the deal of acquiring Within Unlimited, a virtual reality content maker.
Facebook and Within Unlimited's Halted Deal
A deal was proposed by Facebook to acquire the virtual reality content maker Within Unlimited. But Reuters reported that Meta's Chief Executive Officer Mark Zuckerberg has to testify in a case by Federal Trade Commission as the US state believes that this deal should be blocked.
On Friday, FTC listed 18 witnesses in a filed document to the US District Court Northern District of California. This includes Zuckerberg, Within Unlimited Chief Executive Officer Chris Milk, and Meta Chief Technology Officer Andrew Bosworth.
Aside from the acquisition, Zuckerberg will also testify regarding Meta's strategy for the Virtual Reality industry. The court document also indicates the questioning of the court to the company's plans to support third-party developers.
According to a report by Mint, FTC voted 3-2 for this deal to be testified first by the CEO as it tends to "create a monopoly" in the market for VR-related fitness apps. 'Supernatural' is an example of a fitness app and is currently owned by Within Unlimited.
Facebook was also called a "global technology behemoth" as the company dominates the VR world, which started in 2014 when Occulus was acquired by the company.
Acquiring Within Unlimited
Facebook originally signed a deal to acquire Within Unlimited last October 2021, as confirmed by a past report from Reuters. Meanwhile, Meta disagreed with the analysis presented by the FTC regarding the company's acquisition.
"The FTC's case is based on ideology and speculation, not evidence. The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible," Meta stated.
Over $5 Billion was obtained by the VR industry for its revenue last year alone, and it is expected to increase by more than $12 billion in the next two years. This is why FTC argues to halt the deal between the two companies as Meta might dominate the industry knowing that it is a fast-paced process by just looking at these numbers.
Currently, Meta's take on VR has been smooth and great as it receives good sales to its best-selling Quest 2 VR Headset with hundreds of apps available to the Meta Quest Store. The games that are available and notable in this store are Beat Games, Sanzaru, and Rady at Dawn Studios.
FTC Bureau of Competition Director John Newsman stated that acquiring Within Unlimited is a no-go for him as Meta already owns a best-selling fitness app. "But Meta chose to buy market position instead of earning it on the merits. This is an illegal acquisition, and we will pursue all appropriate relief," he added.
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Written by Inno Flores
