Dive Brief:
- Taking a closer look at a deal that would expand Amazon’s reach into consumers’ homes, the Federal Trade Commission has requested additional information and documentation on Amazon’s planned acquisition of iRobot, according to a securities filing from iRobot on Tuesday.
- The filing states that both Amazon and iRobot received a second request from the FTC for more information on Monday. This follows the standard notification and report forms both companies provided the FTC and Department of Justice on Aug. 19 for antitrust review.
- Amazon in early August announced plans to acquire the company known for its automated vacuum, the Roomba, for around $1.7 billion. The deal would expand the retailer’s existing line of home devices, such as Amazon Ring and Blink.
Dive Insight:
Amazon is being investigated by the federal antitrust agency in more ways than one.
The probe of its iRobot deal is in addition to an investigation by the FTC into Amazon’s One Medical acquisition. A second request for both deals means Amazon cannot move forward with the acquisitions “until the companies have substantially complied with the additional investigatory request,” per the FTC.
Amazon and iRobot declined to provide additional comment.
On privacy concerns related to the acquisition of iRobot, Amazon previously told Retail Dive “we think we’ve been very good stewards of peoples’ data across all of our business.” However, the company recently came under fire when it admitted to providing police with security camera information from its Ring systems 11 times without customer consent in 2022.
Several of the Roomba vacuum models from iRobot utilize a tracking method that allows the device to map out and remember obstacles, such as furniture, in a home to improve future cleaning cycles.
