Competition Regulator Examines Amazon's Acquisition of iRobot

Abdul Ghani

The competition authority FTC wants more information from Amazon. That could delay the takeover. The Federal Trade Commission is investigating Amazon's acquisition of Roomba maker iRobot. The US competition regulator has asked Amazon for more details about the planned purchase, The Register reported. This process could delay the takeover by months.

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Amazon encounters a stumbling block in the takeover.Image by iRobot/Creative Commons

The online mail order company announced the takeover of the Roomba manufacturer on August 5, 2022. Amazon wanted to pay a price of $61 per share for the acquisition, for a purchase price of $1.7 billion. Co-founder Colin Angle would remain CEO of iRobot after the acquisition.

It's not the only takeover that has recently sparked concerns about expanding a monopoly. On September 15, 2022, Adobe announced that it wanted to take over its competitor Figma for $20 billion. Former FTC officials told Axios magazine that they expect an investigation in this case as well.

Worried about Amazon's supremacy in the smart home market

In early September, the Fight for the Future organization issued an open letter urging the FTC to challenge the takeover. The purchase of iRobot would "further weaken competition in the smart home device market and solidify Amazon's powerful market position in the broader fabric of the digital economy." Amazon simply buys up competitors and thus eliminates them.

Concerns arose shortly after the acquisition was announced. According to an analysis by Bloomberg, Amazon is not interested in a vacuum cleaner manufacturer, but in the possibility of mapping private homes. Bloomberg pointed out that Amazon's own household robot Astro has not yet been able to compete with a market leader like iRobot.

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Member Of Freelancers Union (USA), Freelance Writer!, and Digital Creator. Ghani Mengal is an enthusiast Freelance blogger and digital marketer. His content has been published and featured on many popular blogs, websites, and publications. Including TeelFeed, LifeHack.org, Data-Driven Investor, TextSniper, Scientific Publication The Predict, The Startup, The Ascent, Heart Affairs, Illumination, And The List goes on.

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