A US lawmaker is scrutinizing the collaboration between the Federal Trade Commission (FTC) and the European Commission regarding the failed $1.4 billion acquisition deal between Amazon.com and iRobot Corp.
The Chair of the House Oversight Committee, Republican Representative James Comer, announced on Wednesday that he is investigating the FTC’s involvement in the collapse of the merger. Amazon and iRobot abandoned their plans to merge in January, facing opposition from both European and U.S. antitrust regulators.
Comer expressed concern that the FTC’s actions could jeopardize America’s position in the personal robotics market, potentially giving foreign competitors, particularly from China, an advantage. He requested documents from the FTC related to its collaboration with the European Commission, alleging that the FTC was bypassing U.S. antitrust laws by working with the EC to achieve its objectives.
Neither the FTC nor Amazon and iRobot immediately responded to requests for comment.
Following the collapse of the deal, iRobot announced a significant restructuring plan in January, intending to reduce costs by cutting about 31% of its workforce, approximately 350 jobs. Additionally, the company’s founder, Colin Angle, stepped down as CEO.
Amazon cited regulatory hurdles in the European Union as the reason for the deal’s failure.
EU antitrust chief Margrethe Vestager stated in January that an in-depth investigation indicated that “the acquisition of iRobot would have enabled Amazon to foreclose iRobot’s rivals by restricting or degrading access to Amazon stores.”
Meanwhile, a source informed Reuters in January that the FTC was on the verge of rejecting Amazon’s deal before the companies decided to abandon it.
Amazon had announced the deal in August 2022, aiming to expand its range of smart home devices, in addition to bolstering its virtual healthcare services, alongside its existing products like Alexa and Ring.