U.S. Antitrust Enforcement agency will review $1.7 billion deal on Amazon's purchase of iRobot

By: Maksim Panasovskyi | 22.09.2022, 16:22
U.S. Antitrust Enforcement agency will review $1.7 billion deal on Amazon's purchase of iRobot

The U.S. Federal Trade Commission has responded to the demands of human rights activists to block Amazon's purchase of robot vacuum cleaner manufacturer iRobot.

Here's What We Know

The $1.7 billion deal became known at the end of the summer of this year. However, advocates believe that the iRobot takeover could be a threat to consumers. The U.S. Federal Trade Commission has received a number of letters of concern that the purchase of robot vacuum cleaner maker Roomba will strengthen Amazon's monopoly in the "digital economy."

In particular, Amazon could sell vacuum cleaners at a loss or offer customers subscriptions to Amazon Prime to win the market. This would create an uneven playing field and be a threat to other players in this market segment. In addition, the U.S. giant could thus gain access to its customers' home layouts, which would also gain a significant edge against competitors.

As a result, the Antitrust Service will conduct an additional review of the iRobot takeover deal. Amazon has not yet commented on the matter.

Source: CNN