Meta Platforms learnt via a Twitter post that the US Federal Trade Commission is suing the company over one of its smaller acquisitions.
The challenge — and the lack of forewarning — indicates the FTC chair Lina Khan’s adversarial stance. Khan is a progressive antitrust advocate appointed by President Joe Biden to shake up the agency amid criticism that it stood by as the tech giants such as Meta scooped up promising rivals, limiting competition in the market.
The FTC alleges that Meta — which makes the most widely used virtual reality headset, Oculus — would eliminate future competition in a new market, often referred to as “nascent competition”. The agency rarely sues using that legal theory given the difficulty in proving a deal would tamp down the potential of a young industry. The last time the FTC brought such a case, in a 2015 instance involving sterilisation technology, the agency lost.
Thanks to Bedoya, Khan won the first battle. After passing on more than 100 deals by the company over a decade, according a 2020 House report on tech company acquisitions, the agency is seeking to block the Within deal.
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