FTC investigates VR division of Meta

FTC investigates VR division of Meta

San Francisco, Jan. 20, 2022

The U.S. Federal Trade Commission (FTC) and several states are investigating Meta’s virtual reality division for possible anti-competitive behavior. Some third-party developers for the Oculus app have been questioned by the FTC and the attorneys general of the states of New York, Tennessee and North Carolina, sources told Bloomberg.

The investigation is reportedly looking into whether Meta’s VR division, formerly called Oculus, is using its market position to stifle competition. Regulators have asked developers whether they are being put at a competitive disadvantage with Meta’s own VR software, including possible discrimination against third-party apps in Meta’s VR app store.

The FTC is also investigating the $299 price of Meta’s Quest 2 headset, which is significantly lower than similar VR hardware from competitors. The agency has already been investigating Meta’s recent acquisition of VR fitness app maker Within.

Last week, a federal judge denied Meta’s motion to dismiss another U.S. antitrust case against the company, giving the FTC a second chance to bring illegal monopolization charges against Meta’s Facebook division.