FTC files suit against Meta for attempting to monopolize Metaverse

The United States Federal Trade Commission (FTC) has filed a lawsuit against Meta and CEO Mark Zuckerberg in an attempt to block the social media giant's "ultimate goal of owning the entire 'metaverse'".

In the lawsuit, filed Wednesday in the Northern District of California, the FTC alleged that Meta and Zuckerberg's potential acquisition of virtual reality firm Within and fitness app Supernatural is illegal under US antitrust laws and is a way for the social media firm to "buy its way to the top" rather than "compete on the merits." The complaint alleged that Meta, under Zuckerberg, was a "potential entrant into the virtual reality-specific fitness app market" with the resources necessary to develop its own app, but instead chose to own Supernatural by acquiring Within. This move would allegedly hinder "future innovation and competitive rivalry" among companies in the United States. Meta's alleged purchase of potential threats to its bottom line is nothing new. In 2020, the FTC filed a complaint against Facebook - before the firm took the Meta name - for "anticompetitive behavior" over its 2014 acquisition of WhatsApp for $19 billion and its 2012 acquisition of Instagram for $1 billion, raising similar concerns about stifling innovation. Both apps, which offer messaging services and photo sharing respectively, were allegedly competitors to Facebook's Messenger app and main platform. Since Facebook adopted the Meta name in October 2021, the social media firm has announced several initiatives focused on expanding the metaverse, including the potential to launch a payments platform that supports cryptocurrency. In May, Meta opened a real-world storefront in the San Francisco Bay Area selling hardware for the virtual reality space. Unless the court stops Meta from acquiring Within, the sale will likely take place on August 1, according to the complaint.