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FTC initiates probe into Meta’s $400 million VR deal for Supernatural

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© Reuters. FILE PHOTO -Signage can be seen in Washington, D.C., U.S.A, on August 29, 2020. REUTERS/Andrew Kelly

(Reuters) – The U.S. Federal Trade Commission initiated an inquiry into Meta Platform Inc’s $400 million contract for Supernatural. This deal is expected to delay the app’s completion, according to news site The Information.

Meta could not complete the acquisition in the next year after the FTC investigation that began just after Thanksgiving Day, last month. The report cited two sources with information about the matter.

This report said that the probe into Meta’s Supernatural agreement appears to have been part of Lina Khan’s FTC mission to ensure big technology companies don’t unlawfully exclude the next generation of rivals in emerging computing platforms.

Reuters did not receive a response from Meta or FTC to Reuters’ request for comment after business hours.

Facebook (NASDAQ :), the largest social media platform in the world, changed its name on October 28th to Meta. It wanted to shift focus to VR and create the “metaverse,” which it hopes will replace the mobile web.

Meta has made significant investments in virtual and augment reality. It developed hardware, such as its Oculus VR headsets. They are also working on AR technologies for wristbands.

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