Entrepreneurs Beware — Is Biden’s FTC Challenge Of The Meta-Within VR Deal About Competition Or Politics?

– Forbes

In Manatt Antitrust Partner David Reichenberg’s latest Forbes column, he discussed the Federal Trade Commission (FTC) challenge to Meta’s acquisition of VR-App builder Within and evaluated the FTC’s claim that there is cross-platform competition amongst similar Apps. 

Reichenberg explained how the FTC filed a suit against Meta on the grounds that a fitness-focused VR App called Supernatural competes with Meta-owned App Beat Saber. Because the FTC’s strategy is “very risky,” the non-politically appointed FTC staff economists and lawyers who investigated this deal recommended against challenging the transaction. Yet Biden-appointed FTC chair Lina Khan overruled FTC staff, which, according to Reichenberg, “begs the question: was this suit filed because of a true competition concern in the VR space, which is still in its early stages, or because Chair Khan believed it had to be done politically as a matter of policy.” Reichenberg warned entrepreneurs that, although enforcement decisions are typically informed by market and competitive facts, the FTC may base their decisions on political motivations as well. 

Forbes subscribers can read the full article here.  

For more of Reichenberg’s Forbes articles, click here

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