A federal judge has sided with Facebook parent Meta and cleared the way for the company to buy virtual reality startup Within Unlimited, the maker of the popular fitness app Supernatural.
Federal antitrust regulators had sought to block the acquisition on the grounds that it would hurt competition in the emerging virtual reality market.
But U.S. District Judge Edward Davila denied the Federal Trade Commission's request for a preliminary injunction against the deal. The judge's ruling said the agency did not provide sufficient evidence to prove its case.
Meta said it will now proceed with its acquisition of Within Unlimited.
The FTC had argued that Meta's acquisition of the small company - reminiscent of Facebook's early purchases of Instagram and WhatsApp - would hurt competition in the emerging virtual reality market.
Allowing the tech giant to buy Los Angeles-based Within Unlimited, the FTC had argued, would violate antitrust laws and dampen innovation, hurting consumers who may face higher prices and fewer options outside of Meta-controlled platforms.
Meta Platforms Inc. said in a statement late Friday after the ruling was unsealed that it is 鈥減leased鈥 with the decision.
鈥淭his deal will bring pro-competitive benefits to the ecosystem and spur innovation that will benefit people, developers, and the VR space more broadly,鈥 the company based in Menlo Park, California, said. 鈥淲e look forward to closing the transaction soon.鈥
The FTC had argued that Meta scrapped its own plans to enter the nascent VR fitness market in the summer of 2021 when it decided to buy Within Unlimited. Without the competitive threat of the tech giant's entry into the market on its own, the agency asserts, innovation stalls, hurting end users.
鈥淭he threat is what keeps firms going,鈥 testified economist Hal Singer, a witness for the FTC. 鈥淚f I know there is a chance that someone could come in and steal my lunch,鈥 he said, companies will innovate and constrain pricing.
But Meta executives - including CEO Mark Zuckerberg - sought to play down the notion that the company was anywhere close to creating its own VR fitness app. The Meta CEO testified that even though his company was 鈥渓ooking at鈥 developing its own VR fitness app before deciding to acquire Within Unlimited in 2021, the business environment has changed and 鈥渢here is almost no chance鈥 it would start such a project today.
Under Zuckerberg's, Meta moved aggressively into virtual reality in 2014 with its acquisition of headset maker Oculus VR. Since then, Meta's VR headsets have become the cornerstone of its growth in the virtual reality space, the FTC noted in its suit. Fueled by the popularity of its top-selling Quest headsets, Meta's Quest Store has become a leading U.S. app platform with more than 500 apps available to download, according to the agency.
Meta bought seven of the most successful virtual-reality development studios, and now has one of the largest virtual-reality content catalogs in the world, the FTC noted.
Davila's ruling, however, says the FTC needed to provide 鈥渁t least circumstantial evidence鈥 that Meta's entry into the VR fitness market by itself, not via the acquisition, would have directly and favorably affected consumers by encouraging robust competition.
鈥淯nder this standard, the FTC's evidence on this element is insufficient,鈥 Davila wrote.
Representatives for the FTC did not immediately respond to a message seeking comment on Monday.
Davila also oversaw the trial of disgraced Theranos founder Elizabeth Holmes and her partner Ramesh 鈥淪unny鈥 Balwani. Both were sentenced to over a decade in prison for their roles in the company's blood-testing hoax.
A Canadian man who is trapped in Lebanon with his family says they are anxiously waiting for seats on a flight out of the country, as a barrage of Israeli airstrikes continues.
NDP House leader Peter Julian says there's more his party wants to do in Parliament before the next election, but if the current dysfunction continues it will become a factor in how they vote on a confidence measure.
A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.
The jury tasked with determining if Canadian musician Jacob Hoggard sexually assaulted a young woman in northeastern Ontario eight years ago began deliberating Friday after nearly two weeks of testimony that saw the singer and his accuser give starkly different accounts of what happened.
A northeastern Ontario jury has started deliberating in Canadian musician Jacob Hoggard's sexual assault trial, we can now tell you what they weren't allowed to hear.
A 21-year-old Yazidi woman has been rescued from Gaza where she had been held captive by Hamas for years after being trafficked by ISIS.
Parts of icy Antarctica are turning green with plant life at an alarming rate as the region is gripped by extreme heat events, according to new research, sparking concerns about the changing landscape on this vast continent.
A 21-year-old man who was charged with attempted murder in the shooting of a Toronto police officer this week was out on bail at the time of the alleged offence, court documents obtained by 麻豆传媒 Toronto show.
Prosecutors have charged a Michigan man with killing and dismembering a janitor he met on the dating app Grindr.
The owners of a North York condominium say they are facing a $70,000 special assessment to fix their building's parking garage. '$70,000 is a lot of money. It makes me very nervous and stressed out of nowhere for this huge debt to come in,' said Ligeng Guo.
A northeastern Ontario jury has started deliberating in Canadian musician Jacob Hoggard's sexual assault trial, we can now tell you what they weren't allowed to hear.
The federal Fisheries Department says it is concerned about a "pattern" of violence and threats toward its enforcement officers after two tense incidents off southwestern Nova Scotia last month.
The owner of a Gatineau, Que. caf茅 says it's 'silly' that Quebec's language watchdog is telling the business to write its Instagram posts in French.
A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.
NDP House leader Peter Julian says there's more his party wants to do in Parliament before the next election, but if the current dysfunction continues it will become a factor in how they vote on a confidence measure.
The U.S. and British militaries struck more than a dozen Houthi targets in Yemen on Friday, going after weapons systems, bases and other equipment belonging to the Iranian-backed rebels, U.S. officials confirmed.
Armed men belonging to the Gran Grif gang killed at least 70 people, including three infants, as they swept through a Haitian town shooting automatic rifles at residents, a spokesperson for the United Nations' Human Rights Office said on Friday.
Iran鈥檚 supreme leader on Friday praised the country鈥檚 recent missile strike on Israel and said it was ready to do it again if necessary, state TV reported.
Prosecutors have charged a Michigan man with killing and dismembering a janitor he met on the dating app Grindr.
UN peacekeepers are staying in their positions on Lebanon鈥檚 southern border despite Israel鈥檚 request to vacate some areas before it launched its ground operation against Hezbollah militants, the UN peacekeeping chief said Thursday.
An Israeli airstrike on a West Bank cafe that the military said targeted Palestinian militants also killed a family of four, including two young children, relatives told The Associated Press on Friday.
NDP House leader Peter Julian says there's more his party wants to do in Parliament before the next election, but if the current dysfunction continues it will become a factor in how they vote on a confidence measure.
Prime Minister Justin Trudeau is set to announce funding to support French-speaking African countries and initiatives to promote the French language in the Francophonie.
Defence Minister Bill Blair says Israel has the right to defend itself in 'a calibrated and proportional way' following Iran鈥檚 ballistic missile attack against Israel on Tuesday.
When an Ontario doctor refused to sign off on a mammogram for 38-year-old Sidra Lone, the mother of four says she was left with no choice but to lie.
Staff at Saskatoon's Royal University Hospital are calling for systemic changes just two days after its emergency room was more than three times above its capacity.
An Ontario child has died after coming in contact with a rabid bat, a health official confirmed on Wednesday.
For humans, flashing a smile is an easy way to avoid misunderstanding. And, according to a new study, bottlenose dolphins may use a similar tactic while playing with each other.
Alphabet's Google is testing showing check marks next to certain companies on its search results, a company spokesperson said on Friday, in a move aimed at helping users identify verified sources and steer clear of fake websites.
A hacking group tied to Russian intelligence tried to worm its way into the systems of dozens of western think tanks, journalists and former military and intelligence officials, Microsoft and U.S. authorities said Thursday.
The jury tasked with determining if Canadian musician Jacob Hoggard sexually assaulted a young woman in northeastern Ontario eight years ago began deliberating Friday after nearly two weeks of testimony that saw the singer and his accuser give starkly different accounts of what happened.
Legendary singer Paul Simon has said he is 'optimistic' about being able to return to performing live after losing most of his hearing in his left ear.
A painting discovered by a junk dealer in the basement of an Italian villa six decades ago is actually the work of Pablo Picasso and could sell for millions, according to experts.
Canada's airlines have failed in their challenge of air passenger protection rules that the federal government implemented in 2019.
The Competition Bureau says it's obtained a court order as part of an investigation into potential anti-competitive conduct by the Canadian Real Estate Association.
The Vatican Bank has fired two employees whose recent wedding violates a newly-introduced ban on marriages between staff.
A five-seat sushi counter located inside another restaurant is the latest Vancouver eatery to receive a Michelin star.
Toilet paper shortages in stores across America are giving folks nightmarish reminders of the pandemic era. But the lack of toilet paper isn鈥檛 a direct result of a major port strike Tuesday. It鈥檚 because of panic buying.
What does New Westminster's t蓹m蓹sew虛tx史 Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.
Caitlin Clark has been named the WNBA Rookie of the Year in a near-unanimous vote, giving the Indiana Fever back-to-back winners after Aliyah Boston won the honour last season.
Days after being suspended by FIFA, Argentina goalkeeper Emiliano Martinez produced heroics in front of the watching Prince William as Aston Villa sealed another famous win against Bayern Munich.
The claim to Shohei Ohtani's potentially lucrative 50th home run ball grew more complicated this week, with a second fan filing a lawsuit asserting he had possession of the historic baseball.
Tesla is recalling more than 27,000 Cybertrucks because the rearview camera image may not activate immediately after shifting into reverse, the fifth recall for the vehicle since it went on sale late last year.
A Pickering, Ont., student going to college to be a mechanic is shocked the engine in his two-year-old car will not be repaired under warranty after the dealership claimed he had been 'over-revving' the engine.
A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.
A husband and wife have been on the road trip of a lifetime and have decided to stop in Saskatchewan for the winter.
The grave of a previously unknown Canadian soldier has been identified as a man from Hayfield, Man. who fought in the First World War.
A group of classic car enthusiasts donated hundreds of blankets to nursing homes in Nova Scotia.
Moving into the second week of October, the eastern half of Canada can expect some brisker fall air to break down from the north
What does New Westminster's t蓹m蓹sew虛tx史 Aquatic and Community Centre have in common with a historic 68,000-seat stadium in Beijing, an NFL stadium and the aquatics venue for the Paris Olympics? They've all been named among the world's most beautiful sports venues for 2024.
The last living member of the legendary Vancouver Asahi baseball team, Kaye Kaminishi, died on Saturday, Sept. 28, surrounded by family. He was 102 years old.
New data from Greater Vancouver and the Fraser Valley shows a surge in supply and drop in demand in the region's historically hot real estate market.
NDP Leader David Eby is vowing to raise British Columbia's speculation and vacancy tax on empty homes if re-elected premier this month.
One day after a man was stabbed to death in East Vancouver, a 27-year-old woman has been charged with murder.
A Vancouver tenant is at war with his former landlord over what he calls an exorbitant charge for bent blinds.
Police have arrested a Toronto woman in connection with three recent homicides and investigators say that they believe two of the victims may have been 鈥渞andomly targeted.鈥
A 21-year-old man who was charged with attempted murder in the shooting of a Toronto police officer this week was out on bail at the time of the alleged offence, court documents obtained by 麻豆传媒 Toronto show.
Police forces in the Toronto area have stepped up their presence in Jewish and Muslim communities as the one-year anniversary of the deadly Oct. 7 terror attack on Israel inches closer.
Martha Hart, the widow of Calgary wrestler Owen Hart, is speaking out after the release of Netflix's 'Mr. McMahon' documentary series, which she says inaccurately portrays her husband's death as an accident.
Authorities say two Calgarians were arrested and charged in "a complex scheme" involving stolen vehicles.
Rural Albertans say they鈥檙e being penalized by high utility fees and some municipalities are asking the government to step in and equalize costs throughout the province.
The owner of a Gatineau, Que. caf茅 says it's 'silly' that Quebec's language watchdog is telling the business to write its Instagram posts in French.
The O-Train will be out of service all day on Saturday and for two additional hours on Sunday as part of work to integrate the Stage 2 East extension with the existing LRT line.
There was a decrease in the amount of waste heading to the City of Ottawa's landfill in the two months leading up to the city's new three-item garbage limit.
At least two people are dead and others are injured after a fire ripped through a century-old building near Montreal's City Hall, sources told Noovo Info.
Classes and campus activities at CEGEP de Valleyfield were cancelled Friday morning as a result of a police operation.
Public transport users who regularly use Fabre, d'Iberville and Saint-Michel stations on the Montreal metro's blue line will have to be patient, as the emergency closure of the three stations announced on Thursday evening could stretch out over 'a few days, or even a few weeks.'
Following the Alberta government鈥檚 recent announcement of capital funding to build charter and independent schools, the Investigative Journalism Foundation has found that several consultants with ties to the United Conservative Party (UCP) have been lobbying on behalf of charter schools and associated organizations over the past year.
Rural Albertans say they鈥檙e being penalized by high utility fees and some municipalities are asking the government to step in and equalize costs throughout the province.
The Rural Municipalities of Alberta (RMA) says a series of Government of Alberta policy decisions have cost its members $332 million in tax revenue over the last three years, and the group is urging the province to make changes to ease the financial strain on rural communities.
A teen charged with the murder of another teen on Prince Edward Island last year has pleaded guilty to a lesser charge of manslaughter.
The federal Fisheries Department says it is concerned about a "pattern" of violence and threats toward its enforcement officers after two tense incidents off southwestern Nova Scotia last month.
A 31-year-old man is facing theft and break-in charges in connection to a vandalism incident at the Fredericton Public Library that caused tens of thousands of dollars of damages over the weekend.
The Opposition Tories introduced a motion to get the justice system to take another look at the case of Jordyn Reimer.
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
Police say a 16-year-old boy has died after an assault outside a northern Manitoba home.
NDP Leader Carla Beck says she would cut $58 million in spending during her first year as premier should her party win the Saskatchewan election set for Oct. 28.
Saskatchewan Party Leader Scott Moe says if re-elected, his government would introduce a Saskatchewan Home Renovation Tax Credit aimed at making renovations more affordable.
As pressure grows on the oil and gas sector to reduce its emissions, one Calgary-based company is banking on the potential to convert waste gas from oil wells into valuable electricity for nearby communities.
Waterloo Regional Police have laid charges after a car crashed into the side of a Kitchener home at 3:30 a.m.
A DoorDash driver who was caught on camera appearing to spit into an Ontario man鈥檚 drink has been removed from the platform, the food delivery company has confirmed.
Two serious crashes shut down Highway 401 early Friday morning in Puslinch, Ont.
Saskatoon police arrested a homeless person at the scene of an encampment underneath the University Bridge on Friday morning.
NDP Leader Carla Beck says she would cut $58 million in spending during her first year as premier should her party win the Saskatchewan election set for Oct. 28.
The mayor of Loon Lake is appealing to both provincial and federal government leaders for assistance in dealing with rising crime in the village, which has seen an increase in vandalism, theft, and property damage.
A northeastern Ontario jury has started deliberating in Canadian musician Jacob Hoggard's sexual assault trial, we can now tell you what they weren't allowed to hear.
An outfitter in Kenora, Ont., and two individuals have been fined a total of $9,500 for bear hunting offences, including abandoning a bear they shot and using it as bait to hunt another bear.
A suspect who accused Thunder Bay police of being responsible for his throat injury actually hurt himself when he swallowed a large amount of drugs.
The London Police Service said that it鈥檚 stepping up police presence around Jewish and Muslim places of worship as the October 7 anniversary of the start of the Israel Hamas war draws near.
A ceremony was held inside the Wolseley Barracks on Friday, honouring the family of Officer Cadet Brett Cameron who died by suicide at the Royal Military College in Kingston, Ont. in 2016.
According to police, officers responded to the 600 block of Tennent Avenue for a, "report of a possible stabbing" around 9 p.m. on Thursday.
Police in Barrie allegedly seized a semi-automatic pistol and drugs during an overnight investigation that resulted in the arrest of three men downtown.
The Ministry of Labour is investigating a workplace incident that claimed the lives of two people in Georgian Bluffs, south of Owen Sound.
A Midland woman is facing several charges after police say she bit an officer while being arrested for an alleged armed confrontation.
A London, Ont. man, who pleaded guilty earlier this year in a harassment case, has been sentenced to two months in jail for criminal harassment of a Windsor, Ont. family.
The Windsor Police Service (WPS) are looking for a witness to a collision between a pedestrian and vehicle in September.
Brian Masse, Windsor-West鈥檚 Member of Parliament (MP), stood before the House of Commons on Friday, criticizing the eased hazardous material restrictions at the Ambassador Bridge.
NDP Leader David Eby is vowing to raise British Columbia's speculation and vacancy tax on empty homes if re-elected premier this month.
Politicians are continuing to promote their promises across British Columbia as the provincial election campaign nears its midway point.
One person is dead after a floatplane carrying three people crashed Wednesday evening in a remote inlet on British Columbia's central coast.
Three young suspects have been arrested in connection with a swarming attack on a teenager in B.C.'s Okanagan last week 鈥 and authorities have asked the public to stop circulating disturbing videos of the incident.
A father in Kelowna is furious after his 13-year-old daughter was brutally beaten on Gyro Beach. He is calling for criminal charges in the devastating attack, which was caught on video by multiple bystanders.
The officer who shot and killed a forcible confinement suspect in Kamloops two years ago was justified in doing so, according to the Independent Investigations Office of B.C.
WestJet has changed its operations at the Lethbridge Airport, and it means there's now only a single daily flight from Lethbridge to Calgary, down from three flights a day, as offered previously.
Archie's Exotic Pet Rescue has been open about six years and, like many other animal rescues, it has seen a surge in surrenders.
It鈥檚 almost deadline day for Lethbridge residents interested in becoming members of one of the city鈥檚 boards, commissions and committees (BCCs).
A northeastern Ontario jury has started deliberating in Canadian musician Jacob Hoggard's sexual assault trial, we can now tell you what they weren't allowed to hear.
A suspect who accused Thunder Bay police of being responsible for his throat injury actually hurt himself when he swallowed a large amount of drugs.
An outfitter in Kenora, Ont., and two individuals have been fined a total of $9,500 for bear hunting offences, including abandoning a bear they shot and using it as bait to hunt another bear.
He may not have logged the fastest time or even gone the full distance, but residents of a Newfoundland town agree the goat who unexpectedly joined the local weekend half marathon was the event's undisputed champion.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people鈥檚 basic human right to food.
A soccer game in England on Tuesday night drove a spike in online traffic across the Atlantic to a website launched by the Newfoundland and Labrador government.
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