- Meta’s second quarter shows a huge loss in its metaverse division.
- The organization changed its name to focus on developing the metaverse.
- Metaverse is a virtual space best experienced through AR, VR and MR techs.
Meta Q2 2022 Financial Statements Comes With Losses
Meta (Formerly Facebook), unveiled their Q2 2022 financial statements where they revealed that the company’s metaverse division lost 2.8 Billion USD. This makes the year to date loss 5.77 Billion USD. The organization has a couple of categories — FOA and FRL — Family of Apps is concerned with company’s applications like Facebook, Whatsapp, Instagram etc. Reality Labs deals with the metaverse aspects.
The organization generated an overall revenue of $28.8 Billion, a 3% rise. Meta changed its title back in 2021 to show that they will completely focus on metaverse development now. It is believed that the company might become the biggest player in this game. Apple, another tech giant, is considered as the fierce rival of the firm.
FTC Becoming Obstacle For Meta
Recently, the Federal Trade Commission (FTC) filed a lawsuit against Meta while they were trying to take over Within, a VR company. FTC filed an injunction, believing that this deal might disrupt the virtual reality market. It may create obstacles by cutting off the competition.
The regulator thinks that the company is able to work alongside Meta. Through the tech giant’s resources they can eventually pursue their goals. The acquisition is unnecessary and can stifle the competition in the market. The injunction can become a huge barrier towards metaverse strategies of the company. FTC filed a lawsuit back in 2020, saying that Meta’s acquisitions may erase the competition from the market.
Google had to go through a similar case when the Justice Department said that the organization is spreading a monopoly in the online search industry.
No matter if it’s metaverse or cryptocurrencies, regulators are always trying to look for loopholes. Metverse is supposed to be a user-owned space where no central entity will be in control. People in the metaverse will not have to play by the rules of centralized organizations, and only the sky will be the limit for their activities.
There’s also a downside to this. If the users will have complete authority to do things freely, they may conduct illicit acts in the metaverse too. For instance, a female claimed that she was harassed by digital avatars in Meta’s metaverse.
Source: https://www.thecoinrepublic.com/2022/07/28/meta-received-a-2-8-billion-blow-in-second-quarter/