December 22, 2022
Meta CEO Mark Zuckerberg says the fact that his company does not have a virtual reality fitness app doesn’t bother him but acquiring one would increase competition and improve such apps.
He made this statement in a federal court in San Jose, California, while defending Meta’s acquisition of the virtual reality fitness app Within Unlimited before an antitrust judge. Zuckerberg argued that Meta was assisting in the development of the virtual reality industry rather than dominating it. He went on to say that owning Within Unlimited was “not that critical” to Meta’s ambitions, stating that he primarily aimed to build communications tools and a platform for apps from various developers.
The FTC had previously expressed concerns that it would harm competition and violate antitrust laws, harming consumers who may face higher prices and fewer options outside of Meta-controlled platforms. The FTC also stated that Meta is attempting to buy its way to the top of the Virtual Reality industry. However, Meta insists that, while fitness is one ‘use case’ for virtual reality, the primary ones that Meta has been focusing on are games, communication, socializing, and work.
The FTC, on the other hand, claims that not only is Meta a potential entrant in this market, but it also has the resources and ability to develop its own VR fitness app rather than acquiring the market’s leading independent player.
The sources for this piece include an article in Reuters.
