Amazon's iRobot deal is now under tough antitrust scrutiny by the Federal Trade Commission
The U.S. Federal Trade Commission (FTC), headed by Chairwoman Lina Khan, has begun reviewing Amazon.com, Inc.'s $1.7 billion AMZN deal dollars for the purchase of Roomba vacuum cleaner manufacturer iRobot Corporation IRBT.
In August, Amazon announced its $61 per share cash deal to acquire iRobot.
According to industry data, iRobot's 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 markets for connected devices and retail.
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 retail websites. retail from Amazon.
Also read: Here's why Amazon is abandoning dozens of warehouses in the United States
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's GOOGL, Google, Apple Inc AAPL, Meta Platforms Inc META, Microsoft Corporation MSFT and 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.< /p>
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The U.S. Federal Trade Commission (FTC), headed by Chairwoman Lina Khan, has begun reviewing Amazon.com, Inc.'s $1.7 billion AMZN deal dollars for the purchase of Roomba vacuum cleaner manufacturer iRobot Corporation IRBT.
In August, Amazon announced its $61 per share cash deal to acquire iRobot.
According to industry data, iRobot's 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 markets for connected devices and retail.
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 retail websites. retail from Amazon.
Also read: Here's why Amazon is abandoning dozens of warehouses in the United States
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's GOOGL, Google, Apple Inc AAPL, Meta Platforms Inc META, Microsoft Corporation MSFT and 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.< /p>
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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