The division virtual reality of the American giant meta accumulated them losses$2.81 billion in the 2nd quarter of 2022. But the US regulator, the FTCis also concerned about risks of a dominant position in the sector of other way around.
In 2021, Facebook changed its name to Meta. So, the company headed by Mark Zuckerberg is planning its shift to other way around. The giant is injecting billions of dollars to develop its technologies in this emerging market.
settle, meta focuses on her in particular virtual reality and augmented reality solutions designed by the Facebook Reality Labs (FRL) division. And the company is not looking at the cost with $10 billion in cumulative losses in 2021.
Already $5.77 billion in losses in 2022 for Meta
In 2022, Meta will maintain a sustainable investment rate. In the 2nd quarter of the year alone, FRL losses of $2.81 billion. This is slightly less than the previous quarter (2.96 billion).
In the same period, the department just released $452 million in revenue, down from the first three months of the year ($695 million). While Meta’s ambitions are great, its activities are VR and AR only marginally to its quarterly revenue of $28.4 billion.
The 3rd quarter of 2022 will also be marked further decline in income. The American digital giant warned this when publishing its results Reality labs would again generate a lower CA.
However, the CEO and founder shows no concern. Mark Zuckerberg warned: the metaverse and its revenues are mainly built on the long term. In the short term, Meta is therefore prepared to lose a lot of money.
“The development of these platforms [metaverse] could generate hundreds of billions or even trillions in revenue over time,” said Mark Zuckerberg in response to analyst questions.
FTC opposes Zuckerberg’s takeover of Within
With its branch other way around, the company is thereby “preparing the foundations for a very successful 2030s”, says the CEO. However, this future could be obscured by the initiative of the competition authorities.
These, especially in Europe, are concerned that an emerging market is not completely dominated, such as that of social networks today. So in the United States, the FTC is planning to block Meta and the acquisition of the virtual reality company Inside.
For the Commission, “Meta could have chosen to try to compete with Within on merit” rather than opting for a takeover. However, the government considers this technological sector to be “vital”.
The FTC is therefore asking the courts to oppose this Meta external growth operation. In response, the company denounces a decision “based on ideology and speculation, not evidence”.
GAFAM also believes that this legal action “sends a disturbing message to anyone looking to innovate in VR” [Réalité Virtuelle] However, it is thanks to a series of acquisitions and regulators’ inaction that Facebook has been able to impose its dominance on social networks.
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