Facebook parent company Meta is facing another antitrust investigation

According to Bloomberg, on Friday, local time, the U.S. Federal Trade Commission (FTC) and several states, led by New York, are investigating potential anti-competitive behavior by virtual reality headset maker Oculus. Facebook, which changed its name to Meta in October, owns Oculus.

Bloomberg quoted people familiar with the matter as saying investigators have been asking developers about "how the Oculus app store discriminates against third parties who sell apps that compete with Meta's own software."

The FTC and the New York Attorney General's Office declined to comment. Meta did not immediately respond to requests for comment.

The investigation could reportedly spell a setback for the social media giant's plans to build a "metacosm," a virtual space where people can work, play and socialize. It also highlights the increase in U.S. government scrutiny the company faces as it continues to grow.

This week, U.S. District Judge James Boasberg rejected Meta's request to dismiss the revised antitrust allegations made by the FTC, but he also said the agency would face an uphill battle to prove the allegations. The REVISed lawsuit filed by the FTC in August accuses the tech company of illegally maintaining its dominance in the social networking space by acquiring or "eliminating" companies it deems a threat to competition. Meta also owns popular photo service Instagram and messaging app WhatsApp. In its complaint, the FTC said Facebook's acquisition of Instagram and WhatsApp led to poorer services, less privacy and data protection, and fewer consumer choices. Meta has said that its investment in both applications has helped them grow and that "they are good for competition."

Last year, Boasberg dismissed a similar complaint filed by a group of state attorneys generals. On Friday, they appealed, arguing the lawsuit should not be dismissed and the ruling should be overturned.

"Mark Zuckerberg claims to build a metaverse, but Facebook's actions continue to cause significant harm to millions of consumers and many small businesses in the real world," Letitia James, The New York Attorney General, said in a statement. "Time and time again, this social media giant has used its dominant market position to force small companies to go out of business and reduce competition from millions of users."