Amazon announced earlier this month that it would acquire Roomba vacuum cleaner maker iRobot in a deal worth US$1.7 billion (around Rs. 13,500 billion). Now it is reported that this deal is under scrutiny by the US Federal Trade Commission (FTC) for violating antitrust laws. Both companies are understood to be preparing for what could be a lengthy investigation. Amazon is already the subject of a wide-ranging FTC monopoly probe. In addition, the antitrust authorities are investigating whether this deal would illegally increase Amazon’s market share in the connected device and retail markets.
According to a report by Politico, Amazon’s acquisition of Roomba vacuum cleaner maker iRobot is under review by the US FTC for violating the country’s antitrust laws.
The antitrust authorities are believed to be investigating whether this deal gives Amazon an unfair advantage in the connected device and retail markets.
The cartel watchdog is concerned that data generated by iRobot’s Roomba vacuum cleaners from users’ homes could be used to gain an unfair advantage over other retailers. According to the report, Amazon and iRobot could face a lengthy and arduous investigation.