iRobot and Amazon agree to share data with FTC over $1.7 billion deal

Expand Bloomberg / Contributor | Bloomberg

After Amazon struck a blockbuster deal to acquire Roomba maker iRobot in August, it looked like Amazon was poised to suddenly dominate the consumer robotics industry. However, earlier this month, Politico reported that the deal would not go through unless the Federal Trade Commission approves it.

For weeks already, like a Roomba in a dusty basement, the FTC's investigation seems already not to end without serious back and forth. On Tuesday, the FTC announced in a regulatory filing that it needed more information before giving Amazon the green light.

The filing cites a federal regulation specifying that the FTC requests “all solicitation materials posted, sent, or given to security holders.”

According to the Associated Press, the FTC is asking for more data on the deal "amid growing concerns" about Amazon's "market power." It appears that the FTC is considering the acquisition of iRobot alongside its investigations into other recent deals with Amazon, such as its acquisition of One Medical.

The FTC investigation comes after about 20 labor and privacy groups sounded the alarm in opposition to the takeover, asking antitrust regulators to intervene, according to Reuters. Among their main concerns is the idea that iRobot's popular Roombas and other consumer robots could collect even more data for Amazon when it already dominates retail spaces, allowing it to stifle more its competitors.

Today's filing with the Securities and Exchange Commission shows that Amazon and iRobot plan to cooperate with the FTC investigation. Amazon declined to comment on Ars and iRobot directed Ars to its investors page documenting all of its filings with the SEC.

While the focus is on what Amazon gets out of the takeover, in a separate SEC filing, iRobot shared with employees and contractors what they expect to get out of the deal. agreement:

“Amazon has an inventive, customer-centric, long-term-focused culture where entrepreneurs thrive,” iRobot wrote in a letter to staff. "By joining the Amazon family, we will be able to accelerate our business and delight our customers with Amazon's resources and technology."

Until the FTC completes its investigation, the deal cannot be completed. AP reported that the data shared with the FTC could prompt the agency to try to block the takeover in court, to sue seeking remedies from tech companies, or to take no action and simply allow the deal to go through. proceed as planned.

The FTC declined to comment on Ars. Politico previously reported on the expected timeline for the investigation, saying "the companies are preparing for a potentially long and arduous investigation, according to two people with knowledge of the investigation."