U.S. formally ends fight against Meta's purchase of VR content maker

FILE PHOTO: Meta Platforms Chief Executive Mark Zuckerberg leaves federal court after attending the Facebook parent company's defense of its acquisition of virtual reality app developer Within Inc., in San Jose, California, U.S. December 20, 2022. REUTERS/Laure Andrillon/File Photo

WASHINGTON (Reuters) -The U.S. government said on Friday it was formally ending its effort to stop Facebook parent Meta Platforms Inc from buying virtual reality (VR) content maker Within Unlimited.

The Federal Trade Commission (FTC), which lost a fight in court to block the acquisition, said in a filing that it has decided to formally end its effort.

The FTC sued Meta in July to stop the Within deal, arguing that Meta's purchase would reduce competition in a new market. The deal for Within, which makes the Supernatural fitness workouts, was reportedly worth about $400 million.

Judge Edward Davila of the U.S. District Court for the Northern District of California rejected the FTC's concerns, and declined to order a preliminary injunction. The FTC did not appeal, and the deal closed in February.

The FTC's effort had been seen as a test of the agency's ability to prevent Meta from acquiring small would-be rivals.

Meta said in a statement that it was "excited" to have wrapped up the transaction to buy Within.

(Reporting by Diane Bartz in WashingtonEditing by Matthew Lewis and David Gregorio)