Meta set to face trial from antitrust regulators trying to block virtual reality deal

Andrea Migliarini/iStock via Getty Images

Meta Platforms (NASDAQ:META) is set to square off against U.S. antitrust regulators attempting to block its purchase of virtual reality startup Within on Thursday.

Meta (META) will face a judge in a San Jose, California court on Thursday on the first day of a scheduled eight day trial. The FTC has asked for a preliminary injunction to the block the acquisition of the VR maker. U.S. District Judge Edward Davila will preside over the hearings.

The FTC sued in July to stop Meta from taking over Within, the maker of popular subscription fitness app Supernatural. On Aug. 5, Meta said it was putting the acquisition on hold as it prepared to fight the commission.

Meta CEO Mark Zuckerberg is expected to testify at the hearing, according to media reports.

Meta in October unsuccessfully tried to get a judge to dismiss the FTC case, arguing that the agency didn't show its planned deal will hurt competition in VR fitness and said claims about competition in the young space are "pure speculation."

Comments

[Satya Mardelli]

Zuck spends heavily to help Dems get elected then the political appointees at the various regulatory agencies break it off in his doodoo hole.

I thought when you pay good money to get politicians elected they are supposed to do your bidding. Is the model broken?

[kata]

@Satya Mardelli

It was and is called extortion. It wasn't what he wanted to do, it's what he was expected to do, and did in spades to please his masters. Musk has no such inclination. Advantage, Musk.

[Satya Mardelli]

@kata
Good point..

[xamd]

@Satya Mardelli
oh get off it and these stupid ideas. Mark isnt liked by anyone, you remember he helped the Russians put Trump in the office. And whether high tech gives more to democrats or republicans takes a lot of research and will probably be found to be 50/50. All these comments like this is just stupid BS. Cut it out.

[ShitsAndGiggles]

MSFT buys activision... crickets. MEta buys a tiny company... Alarm bells all over

[Blowback2]

@ShitsAndGiggles One is respected....the other hated.

[davel]

@ShitsAndGiggles

The activision deal is in danger for the same reason.
The ftc is rightfully challenging these deals that for decades have gone unchallenged.

[ShitsAndGiggles]

@Blowback2 100%

[bluescorpion0]

it seems very fitting..the metaverse is a non existent meta space and this is a meta case regarding a non existent space

[kata]

So now this purchase would restrict competition in a market that doesn't exist, and which might if Meta invested in it and pushed it? Strange definitions these days. I thought the point was to benefit the consumer. How does this lawsuit do that?

[BigEarn]

@kata Exactly. The FTC must be working for Apple and Tim Cook. Helping to stall Meta's progress to give Apple time to release their AR/VR headset. SMH. (*I'm only slightly kidding*) The FTC is a joke.

[ShitsAndGiggles]

@BigEarn Meta isn't great at creating. They do make excellent buys. Same with Apple. Music, Apple Tv, all inferior which is interesting considering the war chest.

[kata]

@BigEarn

Some competitors might influence some of the thinking but doubt it's as blatant as that or, frankly, as thoughtful, rofl. Maybe someone at Meta should seek to clarify their misconception.