Federal regulators will press their case for stopping Meta from acquiring a VR studio beginning Thursday in a San Jose courtroom.
Why it matters: The trial will mark the first high-profile public test of the Federal Trade Commission’s effort under chair Lina Khan to broaden the principles of antitrust law in ways that might bar Big Tech from getting bigger.
Driving the news: The federal court case centers on Meta’s attempt to buy VR fitness company Within, which makes the popular Supernatural app.
- A judge will hear arguments from either side, the FTC going first, and decide whether to grant the agency a preliminary injunction to keep the tech giant from closing on its proposed acquisition of Within.
- The judge presiding is Edward Davila, who recently sentenced former Theranos executive Elizabeth Holmes to 11 years in prison for defrauding investors.
The intrigue: High-level Meta executives may take the stand in defense of the Within purchase, with CEO Mark Zuckerberg and CTO Andrew Bosworth on Meta’s potential witness list.
- Per court filings, virtual reality companies along with employees from Apple, Alphabet, Lululemon, ByteDance, Nike, Peloton and Equinox may also testify about the their products and the state of competition for augmented and virtual reality for fitness.
