The Federal Trade Commission will not appeal the court rulingrejectingits undertake to occlude the acquisition of VR seaworthiness company Within by Facebook and parent caller Meta . The governor ’s decision marks a major winnings for Meta and pull renewed examination on the agency ’s capability to successfully bring similar antitrust cases aimed at limiting Big Tech ’s market dominance .
An FTC representative revealed the decision during a press conference on Monday afternoon , efficaciously bringing an end to the agency ’s two year battle to block Meta ’s acquisition . The spokesperson declined to provide more specific details on its decision but say it was notwithstanding still optimistic its effectual complaint advance valid antitrust concerns that could act a role in next cases . The FTC and legal expert talk with Gizmodo , say that despite the wound , the means may still have some fight leave in it for next antitrust action .
The FTC ’s conclusion to refrain from an appealingness get hours after federal judge Edward Davila’srulingrejecting the FTC ’s effort was unsealed . Within lay down the pop VR physical fitness app Supernatural . In itscomplaint , the FTC sample to debate that the proposed acquisition by Meta , the world’sleading consumer VR headset maker , would snuffle out VR competition and put the company on track towards obtaining a VR monopoly .
FTC Chair and Big Tech critic Lina Khan.Photo: Anna Moneymaker (Getty Images)
Though Davila side with the FTC on a fistful of legal arguments , he was ultimately leave unconvinced that Meta would have opt to enter the VR fitness app market if neglect to acquire Within .
“ Though Meta vaunt considerable financial and VR applied science resources , it did not own the capabilities alone to VR dedicated fitness apps , specifically fitness content creation and studio production facilities , ” Davilla wrote in his opinion .
Davilla ’s ruling drew immediate praise from Meta , which argued its accomplishment would actually increase competition and be a boon for both VR consumer and developer . CEO Mark Zuckerberg cater testimony in legal proceeding leading up to the court ’s conclusion .
“ We are proud of that the Court has abnegate the FTC ’s motion to block our acquisition of Within , ” a Meta voice enunciate in astatement . “ This stack will bestow pro - militant benefits to the ecosystem and goad innovation that will benefit multitude , developer , and the VR distance more broadly . We front fore to closing the dealing before long . ”
Meta did not right away respond to Gizmodo ’s petition for comment .
FTC: Down, but not out
Though the Margaret Court ’s opinion deals a damaging black eye to the FTC , the agency and a monopoly expert speaking to Gizmodo pronounce they remain positive in its power to in effect pursue future action mechanism against other tech party . For entrant , the justice sided with the FTC ’s claim that VR seaworthiness products are their own trenchant market . The judge also agreed that the FTC ’s claim for its sheath , that Meta ’s acquisition could exacerbate competition , were in fact progress on a valid effectual hypothesis . Those smaller wins could help the FTC in succeeding cases .
American Economic Liberties Project Legal Council Lee Hepner bolster up the FTC ’s optimistic outlook telling Gizmodo the conclusion not to appeal is , “ a smart and strategical move by the FTC . ”
“ The FTC for the most part achieved its objective of advancing the legal theory , and only lost on a narrow fact - specific determination , ” Hepner said “ A reviewing court of justice would be deferential to Judge Davila ’s finding of fact , and it ’s not worth it for the FTC to hazard losing their effectual wins on appeal . ”
Hepner go on to say the case “ vindicates ” the FTC and DOJ’sstated approachof bringing forward gainsay literal macrocosm case to advancement legal possibility .
“ In that sensation , this was a win for the FTC , ” Hepner said .
Corporate crimeGizmodoGovernmentMark ZuckerbergMETA
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