Facebook’s strategy to acquire a monopoly on the Metaverse

Metaverse is still on everyone’s lips. Now the debate centers on who will control it. Many experts believe that his rise is similar to the invention of the mobile phone network or the Internet itself. And if this new alternate reality is going to be that powerful, whoever controls it, whether it’s dead, a handful of other big tech companies, or smaller companies, could become the tech giants of the future.

But a growing group of regulators, politicians and organizations are already expressing concern about Facebook’s plans in this area. Can You Manage Metaverse Monopoly? I already did.

monopoly. Facebook has spent nearly two decades cementing its position as the world’s largest social media company, largely by buying other startups like Instagram and WhatsApp. Critics accused Mark Zuckerberg of using a “copy, acquire, crush” strategy to pressure potential competitors into selling or risking being crushed.

Now, some fear that the Meta will use the same tactics in the Metaverse. Although the company is still in the early stages of developing the hardware and software that will make this possible, the company is already a market leader. Meta VR headsets accounted for about 75% of all shipments in the first quarter of 2021. The giant has been quietly buying companies across the Metaverse, and has acquired no fewer than five AR/VRs over the past year.

regulators. They already know your movements. The Federal Trade Commission and several US attorneys general are investigating whether Meta uses monopolistic practices in the AR/VR market, according to Bloomberg. In a report highlighting acquisitions related to the Metaverse Metaverse, the Tech Stewardship Project, an antitrust advocacy group, claimed the company was using “the same rules of the game to crush potential competition” as in the past. past.

Meta critics are particularly skeptical of the company’s purchase of metaverse companies due to controversial acquisitions in the past, notably Instagram and WhatsApp. The Federal Trade Commission and 48 states sued Facebook over the purchases in late 2020, based on internal emails showing how executives strategized to weed out the company’s competitors, including Zuckerberg, who said the purchase was better than the competition. Cases are dismissed.

legitimacy. Some people in Washington want to act before Meta has a chance to dominate an emerging market again. This may require changing existing antitrust laws, which may be too narrow. Historically, antitrust regulations have also been based on the cost of goods to consumers and do not take into account the modern digital economy, where services like Facebook and Instagram are free.

Overstock regardless of losses. Mark Zuckerberg said he wants Metaverse to allow other companies to build in this space. But some independent developers claim that Meta is not as open as it claims. In fact, some augmented/virtual reality hardware companies say Meta is cutting the price of their VR headsets so much that it’s hard for smaller startups to compete.

The Meta Quest 2 headset currently costs €263, which is hundreds of euros less than any similar device on the market. The FTC is said to be investigating the possibility that Meta is selling the Quest headphones at a loss in an effort to undermine competitors and drive them out of the market, a practice known as predatory pricing.

We started using the word

Same thing with the staff.. Stan Larrock, founder of Lynx, an AR/VR startup, explained in this Vox report that Meta tried to steal his engineering team with higher salary offers, but his personal offering remained. But the low price of the Meta for its headphones is not necessarily a violation of antitrust laws. Cases of predatory pricing are difficult to prove.

Current law states that below-cost pricing is illegal unless a dominant firm practices it to bankrupt its competitors, allowing it to raise its prices above market levels to offset its losses while it is a monopoly. Courts generally believe that lower prices are beneficial to consumers.

hard to test. The Metaverse is still a very important part of the virtual future, which makes it difficult to prove accusations that Meta is now monopolizing it. And while Meta has had problems with the FTC in the past, including a record $5 billion fine for privacy violations by Facebook a few years ago, the agency allowed it to acquire companies that helped make it the dominant force it remains today. . .

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