Facebook Parent Company Wins Final Victory over FTC

02/25/2023 03:18 • Crypto & Markets • 83 views

It is reported that the United States Federal Trade Commission (FTC) gave up its last attempt to prevent Meta Platforms Inc. from acquiring a virtual reality startup on Friday local time and handed the final victory to the Facebook parent company. Less than a month before the FTC announced that it had abandoned the administrative procedures for this transaction, a federal judge rejected the FTC’s request for the court to suspend Meta’s acquisition of Within Unlimited. (Cailian Press)

US FTC abandons to block Meta’s acquisition of VR start-up Within Unlimited

Interpretation of the news:

The recent news on the Facebook parent company’s acquisition of Within Unlimited further revealed that the FTC has given up its last attempt to prevent Meta Platforms Inc. from purchasing the virtual reality startup, handing the final victory to the social media giant. This acquisition has been a highly contested issue, with regulators seeking to block Meta Platforms from gaining a monopoly in the social media industry. However, the decision of the FTC to cease its administrative procedures effectively paves the way for the acquisition to proceed.

This decision comes on the heels of a federal judge’s denial of the FTC’s request for an injunction to suspend the acquisition of Within Unlimited. The Federal Trade Commission had claimed that the acquisition would lead to reduced competition, ultimately depriving consumers of alternatives to Facebook-owned platforms. This concern stemmed from Facebook’s already dominant market share in the social media industry.

Yet, while regulators raised the antitrust issue, the court ultimately found insufficient evidence that the acquisition would cause irreparable damage to competition in the industry. For the FTC, the recent developments would be a significant setback, given its efforts to strengthen its power to monitor and regulate mergers and acquisitions. Although the FTC can still appeal the court’s decision, the latest decision suggests a weakening of the authority of the FTC in regulating acquisitions, particularly in an increasingly complex digital economy.

The Meta Platforms’ acquisition of Within Unlimited is expected to allow Facebook to improve upon its virtual reality capabilities, potentially introducing VR functionality in its social media platform. The acquisition is also indicative of Facebook’s aggressive expansionary strategy to seize innovation in the tech industry. It has been able to leverage its capital and resources to maintain its dominant position over a fragmented social media market, raising questions on the sufficiency and effectiveness of regulatory measures to address the concentration of power in the industry.

In conclusion, the Federal Trade Commission’s withdrawal from the administrative procedures against Meta Platforms Inc. underscores the limitations of regulatory action in the rapidly changing digital economy. The Facebook parent company’s victory in this acquisition also highlights the growing dominance of tech giants in the industry, signaling a possible need to strengthen regulation to prevent the consolidation of power.

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Facebook Parent Company Wins Final Victory over FTC

US FTC abandons to block Meta’s acquisition of VR start-up Within Unlimited

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