The Chief Executive Officer of Facebook, Mark Zuckerberg, announced the renaming of it’s social media platform to Meta in late 2021. He declared his intention of going into Metaverse virtual space and his company would be working on making the virtual world come to reality.
The Metaverse space is a virtual world where people can interact, socialize and transact with people out of their Geo-locations and environments. Since the announcement, Mark Zuckerberg has put much effort into making this billionaire project dream come to life.
However, with the recent suit from FTC over alleged monopolization of the virtual internet world, the Metaverse project may be slowed down. The billionaire’s ambition may be trampled on.
FTC Prohibits Meta From Acquiring Virtual Platform
The United States trade agency is set to stop the buying of a virtual fitness platform and company named Within by Zuckerberg company. The Federal agency has been on the move of regulating transactions and acquisitions within the country’s coast.
However, Meta has been caught on the agency’s web. In a terrible court scenario, Mark’s Metaverse’s dream and ambition may be cut short or crippled.
The agency filed a lawsuit prohibiting Meta from purchasing the technology company over claims of buying out competitors. According to the agency chairwoman, Lina Khan, Meta’s moves in monopolizing the tech industry are very evident and may turn out to be dangerous soon.
Khan stated that Meta plans to build a monopolized empire in the virtual space, with little or no significant competitors. She alleged that instead of fully acquiring the fitness and workout platform, Mark should have chosen to compete.
Since the announcement of the Metaverse project, Mark has been buying out several virtual companies; Oculus VR, Octazen, Divvyshot, Friendfeed, Parakey, Zenbe, Chai Labs, Snapyu, Onavo, and others. Mark was even accused of acquiring a company bearing a similar name to Meta.
Federal Trade Commission To Stop Industry Monopolization
The move by the United States trade commission to stop Meta has set an example of how it will kick against monopoly by big companies. The commission is focused on preventing big technology and cryptocurrency companies from acquiring the small and start-ups platform to dominate the market.
Khan regarded the ‘ecosystem’ play by the companies as a ruthless move. She stated that large companies and platforms should be prohibited from entering new markets, which include Metaverse. The new markets should be left for start-ups and medium-sized companies to trade in.
During a conference last year, Khan revealed that the ‘ecosystem play’ being displayed by large companies will be kicked again. Struggling companies are being acquired or merged to expand their dominance in the technology and cryptocurrency space.
Meta founder Mark Zuckerberg is most likely to defend himself from the allegation leveled by the agency against its company. With the company’s past acquisitions and mergers, it may be hard for Meta to prove its innocence of not monopolizing the industry.