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VR startups accused Facebook of aggressive competition: the company brazenly copies services and destroys competitors
Virtual reality startups accused Facebook of using their dominant market position to suppress competitors. Previously, Facebook’s activities in the virtual reality and social media markets have repeatedly attracted the attention of US regulators.
Facebook became the largest manufacturer of VR equipment after buying Oculus for $ 2 billion in 2021. The deal attracted the attention of US antitrust authorities, which continue to study the company’s activities in the VR market.
One US lawmaker has said in the past that Facebook’s dominance in the VR market is due to a simple strategy of “copying, acquiring and killing any company that is a potential competitor.”. Virtual reality software developers and startup founders say Facebook is currently using the same strategy to undermine competition in the VR market.
VR Developers Confident Facebook Leverage Market Dominance To Fight Competitors. To do this, the tech giant copies the most promising ideas, sells its devices at prices below cost, and also makes it difficult for some applications to work on its VR platform. Recall, according to the analytical company IDC, Facebook currently occupies 39% of the VR equipment market, which makes it the largest player in the industry.
Image Source: Getty Images
One of the founders of the startup Yur Inc., maker of technologies that can be integrated into games and apps for Oculus, said “Facebook is eating up the industry,” adding that “the company is killing any app that has a chance of competing successfully.”.
This claim is backed up by a story related to one of Yur’s products. In September 2021, the startup launched a fitness app for Oculus and spent several months meeting Facebook’s security, privacy, and performance requirements. This was required in order to publish the product on the official Oculus content store. Although the app met all the criteria, Facebook never published it on their content store, but it could be downloaded from third-party sources. In the spring of 2021, a software update for Oculus was released, after which the Yur app stopped working, and users were prompted to uninstall it. In September of this year, Facebook released the Oculus Move app, which, according to Yur’s developers, has the same features and interface as the startup’s app. Thus, the developer accuses Facebook of the fact that the company actually killed the Yur application by breaking its functionality and copying the functions into its own development.
Other VR developers who tried to list their products on the Oculus store found themselves in a similar situation. The source notes that more than 40 developers planned to write an open letter to Facebook, demanding more transparency on the Oculus store. It is also noted that they intend to merge with a reputable organization, which has not been named, so that it further represents the interests of VR developers.