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The U.S. Federal Trade Commission (FTC), led by Chair Lina Khan, has started scrutinizing Amazon.com, Inc’s AMZN $1.7 billion deal to buy Roomba vacuum maker iRobot Corporation IRBT.
In August, Amazon announced its all-cash deal of $61 per share to acquire iRobot.
According to industry data, iRobot’s Roomba dominates the smart vacuum market with a 75% market share by revenue in the U.S.
The FTC’s antitrust review includes a look at both head-to-head competition and whether the deal would illegally boost Amazon’s market share in the connected device and retail markets.
Earlier in August, Bloomberg quoted an Amazon spokesperson saying that the company would continue to supply retailers with iRobot products and sell competing devices on Amazon’s retail websites.
Also Read: Here’s Why Amazon Is Abandoning Dozens Of US Warehouses
In the wake of a report by the FTC last year, Khan has insisted the agency take a closer look at the acquisitions made by the tech firms.
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 smaller deals.
Amazon has expanded its device lineup with more speakers showcasing its Alexa voice assistant and home security doorbells and cameras from Ring, which it acquired in 2018.
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Image and article originally from www.benzinga.com. Read the original article here.