Meta Cleared To Acquire VR Startup Within Unlimited After FTC Loses Case: Report

Zinger Key Points
  • Judge denies FTC's request for a preliminary injunction to block the deal.
  • FTC's in-house trial to begin on Feb 13.

Meta Platforms has received approval from the court to acquire Within Unlimited, a virtual reality startup, despite the efforts of the U.S. Federal Trade Commission (FTC) to block the deal, Bloomberg reported.

In a statement, Judge Edward Davila in San Jose, California, said, "The FTC has not carried its burden to demonstrate a likelihood of success on the merits or that irreparable harm will occur absent a preliminary injunction."

He further added, "The evidence of potential harm is speculative and unsupported by reliable economic evidence."

The FTC sued Meta in July, indicating that the purchase of Within Unlimited, the maker of a popular VR fitness app, would give Facebook an advantage in dominating the virtual reality industry.

Also Read: U.S. Air Force Boosts Blockchain Adoption With $30M Investment In SIMBA Chain

The FTC argued, "Meta's proposed acquisition of Within will enhance its ability to dominate and control the virtual reality market to the detriment of consumers and competitors."

The case was the first significant loss for FTC Chair Lina Khan, who was appointed by President Joe Biden to revitalize antitrust enforcement as a key tenet of his administration's economic policy.

Khan has taken a more aggressive approach to mergers than her predecessors and stepped up the agency's focus on technology giants in particular because of their potential to quickly dominate budding markets.

Despite the FTC's loss in the case, an in-house trial will proceed on Feb. 13 before the FTC's administrative judge.

Next: Celsius Bankruptcy: Eligible Users To Withdraw Majority Of Assets

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsMarketsTechAndrew BosworthCloud GamingFacebookFederal Trade CommissionFTCJoe BidenJudge Edward Davila San JoseLina KhanMark ZuckerbergMeta PlatformsMicrosoftvirtual realityWithin Unlimited
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!