FTC Push to Block Meta VR Takeover Set for December Showdown

Alex Barinka, Bloomberg News

An exhibitor demonstrates an Oculus Quest 2 virtual reality (VR) headset during the NFT LA conference in Los Angeles, California, U.S., on Tuesday, March 29, 2022. NFT LA is an integrated conference experience fused with immersive Metaverse integrations. Photographer: Bing Guan/Bloomberg , Bloomberg

(Bloomberg) -- Meta Platforms Inc.’s proposed acquisition of a virtual reality company is headed for a court showdown in December in the Federal Trade Commission’s first preemptive challenge to a takeover by the tech giant.

Hearings on the FTC’s move to block the deal are expected on seven days through Dec. 20, US District Judge Edward Davila in San Jose, California, said Monday.

At issue is Meta’s takeover of virtual reality company Within Unlimited Inc., which makes the fitness app Supernatural. The FTC claims the acquisition could ultimately enable Meta to have a monopoly in the virtual reality industry.

The social media giant agreed to hold off on closing the purchase until Jan. 1, or until Davila rules on the FTC’s injunction request, whichever comes first.

The deal reflects a more aggressive stance by the agency when it comes to antitrust, fueled by the FTC chair appointed by President Joe Biden, Lina Khan. Meta has acquired more than 100 companies over the past decade, according to a 2020 congressional report. Within is a small company in a young industry -- a combination not often countered by the FTC.

The opposing sides will have until Nov. 21 to file written arguments.

Read More: Meta Pauses Purchase of Within, Vows to Fight FTC Lawsuit