A judge has denied a request from the U.S. Federal Trade Commission to block Meta's purchase of virtual reality studio Within Unlimited, according to Bloomberg sources.
The sealed decision from U.S. District Judge Edward Davila means Meta can potentially move forward with the transaction. Davila also issued an order barring Meta from closing on the deal for a week, giving the FTC enough time to file an appeal.
- The FTC sued Meta over the deal in July, arguing that it stifles competition and is illegal on antitrust grounds.
- The agency has argued that the merger would "tend to create a monopoly" in the VR market.
- Within is the developer behind the "Supernatural" fitness app for VR. In 2019, Meta acquired Beat Games, the studio behind the popular VR game "Beat Saber." The FTC has argued that Meta's purchase of Within would eliminate a needed rivalry between the two studios.
- Meanwhile, Meta has said it believes it should be allowed to acquire Within because it has "no history of successfully building VR apps from scratch."
- In 2014, Meta acquired VR hardware maker Oculus for around $2B following a green light from the FTC's antitrust team.