Today, Amazon terminated its planned acquisition of iRobot, manufacturer of Roomba robot vacuums, as the companies saw

iRobot Lays Off 350 Employees as Amazon Kills Merger Elizabeth Warren Opposed

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2024-04-24 00:30:05

Today, Amazon terminated its planned acquisition of iRobot, manufacturer of Roomba robot vacuums, as the companies saw "no path to regulatory approval." iRobot then announced that it would be cutting nearly one-third of its work force.

While the companies blamed regulators in the European Union for the termination, meddlesome U.S. lawmakers played their own part in souring the deal.

In August 2022, Amazon announced its intent to buy iRobot for $1.7 billion. The acquisition would complement Amazon's growing stable of smart home products, like Echo Hub control panels and Ring video doorbells.

The following month, the Federal Trade Commission (FTC) began an investigation of the merger, and lawmakers weighed in soon after. In a letter to FTC Chair Lina Khan, Sen. Elizabeth Warren (D–Mass.) and five Democratic representatives recommended that "the FTC should use its authority to oppose the Amazon–iRobot transaction" as the acquisition "could harm consumers and reduce competition and innovation in the home robotics market."

The letter referenced a Bloomberg article about the proposed merger, which noted that "iRobot's Roomba dominates the smart vacuum market with a 75% market share by revenue in the US." The lawmakers cited the FTC's antitrust authority and "Amazon's history of anticompetitive practices" as reasons the agency should oppose the merger.