United States Federal Trade Commission (FTC), led by Chairman Lina Khanbegan to scrutinize Amazon.com, Inc. AMZN $1.7 billion deal to buy Roomba vacuum cleaner iRobot Corporation IRBT.
In August, Amazon announced its $61 per share cash deal to acquire iRobot.
According to industry data, iRobot Roomba leads the smart vacuum cleaner market with a 75% market share by revenue in the United States
The FTC’s antitrust review includes an examination of both direct competition and whether the deal would illegally increase Amazon’s market share in the connected device and retail markets.
Earlier in August, Bloomberg quoted an Amazon spokesperson as saying the company would continue to supply retailers with iRobot products and sell competing devices on Amazon’s retail websites.
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Following an FTC report last year, Khan urged the agency to take a closer look at acquisitions made by tech companies.
According to the report, companies like Alphabet Inc. GOOGL, Google, Apple Inc. AAPL, Meta Platforms Inc META, Microsoft Corporation MSFTand Amazon used loopholes to avoid antitrust scrutiny on small transactions.
Amazon has expanded its lineup of devices with more speakers showcasing its voice assistant Alexa and doorbells and home security cameras from Ring, which it acquired in 2018.