Khan’s FTC attempted to broaden antitrust law’s scope. Meta’s struggling VR ambitions demonstrate its significance. In 2021, virtual reality was seen as the internet’s future. The pandemic increased interest in digital communities, prompting Facebook’s rebranding to Meta, showcasing its dedication to the metaverse. Despite significant financial losses in VR, Meta introduced an upgraded Quest 2 headset and aimed for a high-end Quest Pro launch. By year’s end, they planned to acquire Within, a VR gaming studio known for “Supernatural,” for a speculated $400 million. However, less than five years later, the game was discontinued, leaving a passionate community disappointed.
Former FTC chair Lina Khan sees a lesson in “Supernatural’s” fate and its community’s loss, as her attempt to block Meta’s acquisition of Within failed. She highlights the importance of understanding a product’s impact on communities, criticizing Meta’s acquisition as an abstract effort against Big Tech rather than recognizing its potential human cost. Khan aimed to update antitrust laws, challenging Meta’s dominance in VR by buying development studios and popular games like “Beat Saber.” The FTC’s lawsuit focused on potential competition impacts, diverging from traditional cases involving existing competition harm.
Despite losing the case, as the court deemed the FTC lacked sufficient evidence of Meta’s market influence, Meta acquired “Supernatural.” Earlier this year, Meta announced a shift from the metaverse towards smart glasses and AI, leading to cuts in the Reality Labs division and layoffs affecting “Supernatural.” Although Meta pledged to keep the game’s archive, the community felt abandoned. Discussions arise about Meta’s impact on VR and concerns about Big Tech’s tendency to acquire and neglect products, impacting dedicated communities.
Khan emphasizes the importance of competition in driving innovation, noting that unchecked acquisitions by tech giants like Meta can entrench monopoly power. While a successful FTC case might not have changed “Supernatural’s” outcome, it could have made it less susceptible to Meta’s business decisions. Blocking the acquisition might have allowed “Supernatural” to thrive independently. Khan and other critics caution against relying on big companies, as their decisions often prioritize profit over community interests and innovation.