Following is the news that the FTC’s antitrust lawsuit against Meta overcome a significant obstacle As of earlier this week, the agency apparently is taking a keen interest in the company’s VR business as well.
bloomberg reports That the FTC and several state attorneys general are investigating Meta’s virtual reality division for “potential anti-competitive practices.” New York is reportedly leading the state-level investigation, chatting with outside software developers who make apps for Meta’s VR experience.
State and federal officials are investigating how the company may engage in anti-competitive behavior to suppress competition in the VR market. According to Bloomberg, executives were also interested in how the company pushes the price of its Quest 2 VR headset onto consumers and stands out from the competition.
The fact that the FTC has been digging around about Meta’s App Store, hardware, and software practices suggests that its acquisition of the company isn’t the only angle it could be a landmark antitrust case that will define the next era of Internet businesses. does.
In December, Information reported that the FTC was considering Meta’s proposed acquisition of Supernatural, a VR fitness app, in a deal worth more than $400 million.
Earlier this week, a judge ruled that the FTC’s major antitrust case against Facebook (owned by parent company Meta) could continue, rejecting the company’s attempt to block it. In December, Facebook asks court to dismiss lawsuit and FTC Chair Leena Khan, a proponent of breaking up big tech, to differentiate herself.
In that lawsuit, the FTC accused Facebook of abusing its market power to suppress rivals in the social media space and asked a judge to ask parent company Meta to separate itself from Instagram and WhatsApp.
“The facts alleged this time to strengthen those principles, however, are far stronger and more detailed than previously thought, particularly in the context of the defendant’s alleged monopoly,” US District Judge James Bosberg wrote.
“… although the agency may face a lengthy task in proving its allegations, the court believes that it has now cleared the plea bar and can proceed with the search. “