A PYMNTS Company

Lawmaker Probes FTC and EU’s Role in Amazon’s Failed iRobot Acquisition

By  |  May 2, 2024

The Chair of the House Oversight Committee, Republican Representative James Comer, has announced an investigation into the Federal Trade Commission’s (FTC) involvement with the European Commission regarding Amazon.com’s failed attempt to acquire iRobot Corp in a $1.4 billion deal. According to Reuters, the move comes after Amazon and iRobot abandoned their merger plans in January amidst opposition from regulators on both sides of the Atlantic.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Comer expressed concerns that the FTC’s actions could harm America’s standing in the global personal robotics market while potentially benefiting foreign competitors, particularly those based in China. In a letter to the FTC, he requested documents shared with the European Commission related to the collapsed deal.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Following the dissolution of the proposed merger, iRobot unveiled a significant restructuring plan, including slashing approximately 31% of its workforce, or 350 jobs. Additionally, Colin Angle, the company’s founder, stepped down as CEO.

    Related: Whose Failure Is the Failed Amazon/iRobot Merger?

    Amazon cited regulatory hurdles in the European Union as the primary reason for the deal’s failure. Margrethe Vestager, the EU’s antitrust chief, indicated that their investigation revealed concerns that the acquisition would allow Amazon to limit access to iRobot’s competitors, potentially stifling competition in the market.

    Sources revealed that the FTC was on the verge of rejecting Amazon’s bid before the companies announced their decision to abandon the deal. Amazon had announced its intention to acquire iRobot in August 2022, aiming to bolster its portfolio of smart home devices and expand into the virtual healthcare sector.

    Source: Reuters