Lawsuit Accuses Meta of Anticompetitive Behavior in VR Fitness Market

Krissy Vann | Host, All Things Fitness and Wellness

A California-based interactive app and game-design collective, Andre Elijah Immersive Inc, has filed a lawsuit against Meta Platforms, the parent company of Facebook, and other defendants, including Alo Yoga, a fitness and clothing company. The complaint alleges that Meta unlawfully terminated a contract for a fitness program as part of what the collective describes as an "anticompetitive campaign" to gain dominance in virtual reality markets.

The collective claimed to have developed a fitness app with Meta and Alo, featuring renowned yoga instructors. It was set to be launched at Meta Connect 2023, but Meta reportedly terminated the contract upon learning that the collective was also working with rival platforms Apple and Pico for app distribution.

Meta has not commented on the matter, and Alo Yoga has yet to respond to requests for comment. Attorneys for the defendants have not made appearances in the case at this time.

The lawsuit, which demands over $100 million in antitrust damages, accuses Meta and the co-defendants of engaging in "abusive and anticompetitive behavior," potentially violating U.S. antitrust law. The collective, described as a "new entrant" in the virtual reality fitness market, seeks restitution for the breach of the app contract and other damages.

This legal action comes in the wake of the U.S. Federal Trade Commission's (FTC) lawsuit against Meta in California federal court, which aimed to halt Meta's acquisition of Within Unlimited, the maker of Supernatural fitness workouts. The FTC argued that the acquisition could stifle innovation in the VR fitness app market, but the deal proceeded after a preliminary injunction was not granted.

The collective's lawsuit points out that Meta has become a significant player in the virtual reality marketplace, with involvement in both hardware and app distribution. The exclusion of the fitness app developed by the collective, according to the complaint, has the potential to eliminate competition in the VR fitness market.

The case is filed under the name Andre Elijah Immersive Inc v. Meta Platforms Technologies LLC et al, U.S. District Court, Northern District of California, No. 5:23-cv-05159-NC.

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