Lina Khan's Prescient Vision: How the FTC Chair Anticipated the Metaverse Fallout

Lina Khan, the Chair of the Federal Trade Commission (FTC), has been proved right in her assessment of the tech industry's unchecked power and the potential dangers of the metaverse. In 2021, as the pandemic drove people indoors, the virtual world became the focus of the internet's future, with Meta (formerly Facebook) leading the charge towards the metaverse.

Despite losing billions in its VR division, Meta continued to invest heavily in the metaverse, releasing an upgraded version of the Quest 2 headset and focusing on launching a higher-end Quest Pro. At the end of the year, it announced plans to acquire the fitness app Supernatural for a reported $400 million, further solidifying its commitment to the metaverse.

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However, Lina Khan had already sounded the alarm, warning about the dangers of unchecked power held by tech giants like Meta. She argued that the company's dominance in the social media and digital advertising space gave it an unfair advantage, which could be further amplified by its metaverse ambitions.

Khan's concerns have now been validated as Meta's metaverse investments have faced mounting losses and scrutiny. In 2022, the company's Reality Labs division lost $13.7 billion, casting doubt on the viability of its metaverse plans. The FTC has also scrutinized Meta's acquisition of Supernatural, raising concerns about the company's growing influence in the virtual reality space.

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As the metaverse becomes an increasingly important part of the digital landscape, Lina Khan's warnings about the risks of unchecked tech power have proved prescient. Her efforts to rein in the dominance of Big Tech companies like Meta have gained new urgency, as the industry's missteps and failures in the metaverse have become increasingly apparent.

The fallout from Meta's metaverse investments serves as a cautionary tale, highlighting the need for stronger regulation and oversight of the tech industry. Lina Khan's leadership at the FTC has played a crucial role in bringing these issues to the forefront, setting the stage for a more comprehensive approach to addressing the challenges posed by the rapidly evolving digital landscape.