FTC Clamps Down on Meta’s VR Takeover
Washington – On July 27, the Federal Trade Commission (FTC) filed a plea in San Francisco federal court, asking the judge to halt Meta Platforms’ plans to merge with virtual‑reality powerhouse Within Unlimited. In plain English, the FTC is saying, “Too fast, too big, and maybe a little too controlling.”
Why the FTC Isn’t Moved Into Their Dig
- Meta’s History of Owning the Internet’s Hotshots: From Instagram to WhatsApp, Meta has a track record of grabbing popular platforms.
- The VR Playbook: Back in 2014, “Facebook” bought Oculus. That was the first chapter of what the FTC now calls Meta’s “campaign to conquer VR.”
- Within’s “Supernatural” Fame: Within’s flagship fitness app, Supernatural, already tops the VR fitness charts. The FTC fears a monopoly could arise if Meta owns both the platform and the hit app.
What Within Brings to the Table
Founded in 2014, Within describes itself as “the premier destination for cinematic virtual reality.” It’s got a pretty impressive investor list: Singapore’s Temasek Holdings, Andreessen Horowitz, Disney, 21st Century Fox, Annapurna Pictures, Legendary Pictures – the whole Hollywood glam squad.
Meta’s Deal with Within
- Announced in October 2021.
- Undisclosed price. The secrecy only fuels more skepticism.
Meta’s Response – “Not Even Close”
Meta spokespersons fired back with a comb of rationality:
“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 Teams Up with the VR Club
Meta confidently declared that their partnership with Within will be a win for everyone involved: “We are confident that our acquisition of Within will be good for people, developers, and the VR space.”
Stats That Make the FTC Cry
- VR industry revenue jumped from about US$5 billion last year to a projected US$12 billion in 2024.
- Meta already runs the Quest 2 VR headset empire and controls the Meta Quest Store.
- Meta’s already own popular VR fitness apps and has acquired game studios like Beat Games, Sanzaru, and Ready at Dawn.
The FTC’s Final Word
“Meta already owns a best‑selling virtual reality fitness app, and it had the capabilities to compete even more closely with Within’s popular Supernatural 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.”
— John Newsman, FTC Competition Bureau Director
Bottom line: The FTC says Meta is ordering the VR market like a power‑tripner, and the move could lead to a monopoly. Meta, meanwhile, shrugs and insists the deal is a win for all, hoping the court will align with their vision.
