July 29th, 2022: Meta In The News Again???? FTC Blocks Supernatural Merger
Welcome back! Meta is in the news again today and this time it is also a negative story (the name change didn't fool anyone). The FTC is reportedly suing to block Meta's filed merger of the popular fitness app, Supernatural, aiming to block the deal with a federal court. The FTC stated: 'Instead of competing on the merits, Meta is trying to buy its way to the top. Meta already owns a best-selling virtual reality fitness app (Beat Saber), and it had the capabilities to compete even more closely with Within's popular Supernatural app. But Meta chose to buy market position instead of earning it on the merits. This is an illegal acquisition, and we will pursue all appropriate relief.'
To date, this may be the first time the FTC has formally attempted to block Meta's acquisition of a VR studio. The company has previously acquired Beat Games, Sanzaru Games, Ready at Dawn, Downpour Interactive, BigBox VR, and all in just under two years. In a statement to the New York Times about the matter, Meta said: 'the FTC's position is based on ideology and speculation, not evidence. The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible.'
For those interested the original article covered the initial reports of the FTC's scrutiny of the Within deal and you can find it here. Will the FTC be successful in their goal to block Meta? Check back with D3D's News Blog to find out as more details are released.
Until next time!