Fitness substitutability extends beyond virtual reality
…either-or — consumers can utilize different offerings simultaneously. The fact that a consumer uses Oculus’s virtual reality workouts doesn’t mean Meta isn’t still competing to draw attention away from fitness substitutes. This feature of substitutability is essential to market definition. The FTC itself says, “In the most general terms, a product market in an antitrust investigation consists of all goods or services that buyers view as close substitutes.” Based on this understanding, the market definition for the products Beat Saber and Supernatural offer should at least be expanded to all fitness games, if not even further by including at-home fitness services such as Peloton or even traditional fitness centers. By narrowing the market definition so severely, the FTC has effectively made it easier to suggest an increased market concentration. The standard measure of market concentration is the Herfindahl–Hirschman Index. This index is calculated by summing the square of the market…