FTC sues to block Meta Platforms acquisition of VR app firm Within (updated)
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The Federal Trade Commission has filed suit to block Meta Platforms (NASDAQ:META) from acquiring Within, the creator of virtual reality apps including subscription fitness app Supernatural.
The FTC launched some heavier scrutiny into the $400M deal last December.
Meta saw Supernatural as a rival to other new-fitness approaches including Peloton (PTON), Mirror (LULU) and Tonal.
But allowing the deal would "substantially lessen competition" or "tend to create a monopoly," the FTC argues in federal court documents filed in San Francisco Wednesday.
âInstead of competing on the merits, Meta is trying to buy its way to the top,â said FTC Bureau of Competition Deputy Director John Newman.
âMeta already owns a best-selling virtual reality fitness app, and it had the capabilities to compete even more closely with Withinâs 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.â
Meta's VR headsets have included Oculus Move built in to its operating system. Other Supernatural rivals include Holodia's Holofit, SideQuest's VRWorkout, and FitXR.
Updated: âThe FTC's case is based on ideology and speculation, not evidence," a Meta spokesperson told Seeking Alpha. "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. By attacking this deal in a 3-2 vote, the FTC is sending a chilling message to anyone who wishes to innovate in VR. We are confident that our acquisition of Within will be good for people, developers, and the VR space.â