On July 25, 2022, Meta Platforms, Inc. (“Meta”) filed a petition to recuse Chair Lina M.
FTC
Khan from participating in any decision concerning the Commission’s review of Meta’s
proposed merger with Within Unlimited, Inc (“Within”). Meta argues that Chair Khan’s prior
statements require recusal. In truth, those statements concern a different industry, a different
realm of transactions than those presented here, and, effectively, a different acquiring company. They were made before she was appointed to the FTC and known to the President who nominated her and Senate who confirmed her, and predated the transaction at issue here. In fact, they predated the rebranding of the company as “Meta,” signaling its strategic shift into a focus on artificial and virtual reality. Accordingly, as discussed in more detail below, the Commission, without participation of Chair Khan, denies the petition.
The FTC chair Lina Khan is really trying to show some teeth in anti-trust cases. Meta wants to buy Within, creator of the fitness app, Supernatural, for the Oculus Quest. This is pretty much par for the course for Meta: buy up anyone interesting or competitive, absorb them, and take out the competition. So, there is merit in the company being pursued by the Khan on this one. Anti-trust action has been woeful against big tech companies, even with a more concerted effort emerging from the Biden administration, it may not change. Of course, there is a paucity of good content, and even less great, in VR. You can’t blame Meta for wanting to feed on it.
So we are not surprised when we read this:
Judge Edward J. Davila of U.S. District Court for the Northern District of California declined the F.T.C.’s demand for a preliminary injunction to block Meta from buying Within, which makes a virtual reality fitness game called Supernatural, said the people, who spoke on the condition of anonymity because the orders are sealed.
New York Times
It ain’t over, yet, because Meta has to keep its money in its pocket for now to see if the FTC will appeal.
