The US Federal Trade Commission (FTC) reportedly claimed Meta Platforms was making acquisitions to establish a dominant position in the metaverse, as a trial got underway over the company’s attempts to buy a VR app developer.

In July, the FTC moved to block Meta Platforms’ proposed acquisition of Within Unlimited, arguing the tie-up would create a monopoly for fitness apps.

Meta Platforms struck the deal in 2021, a day after changing its name from Facebook.

Among its offerings, Within Unlimited operates popular subscription-based VR workout app Supernatural.

With a trial over the deal getting underway, Reuters reported FTC lawyers argued Meta Platforms was attempting to acquire new and diverse VR users, complementing its current customer base in the segment which tended to be young, male and focused on gaming.

At the crux of the FTC’s objections, it argues Meta Platforms has the resources and capability to build its own in-house VR fitness app and it even had plans in place to do so in 2021 through a partnership with digital health company Peleton.

However, Meta Platforms argued that particular plan was not advanced, while adding the FTC had not adequately defined the fitness market, with companies competing across a range of content and not just dedicated apps.

The outcome of the trial could go a long way to deciding the FTC’s broader goal of stopping Meta Platforms from making smaller acquisitions of potential rivals and therefore killing-off competition.

Supernatural is only available on Meta Quest devices.

Activision storm
In a separate probe, the FTC is set to enter into a legal battle with Microsoft, after voting to block a proposed $69 billion acquisition of games publisher Activision Blizzard.

The regulator cited competition concerns as a major reason behind its decision, while the deal has also faced opposition in other markets including Europe.