Amazon.com Inc (NASDAQ:AMZN) and iRobot Corp have been asked for more information by the US Federal Trade Commission (FTC) regarding the eCommerce giant's $1.7 billion buyout of the Roomba vacuum maker, Reuters reported
In a filing on Tuesday, the newswire noted that iRobot said the FTC had on September 19 requested more details on the deal that was announced last month and will expand Amazon's stable of smart home devices.
A group of about 20 pro-privacy and worker organizations have urged US antitrust enforcers to stop the deal, citing concerns about privacy and Amazon's already powerful position in the smart home devices market, Reuters said.
READ: Amazon to buy maker of Roomba home-cleaning robots
An FTC probe began earlier this month and covers both head-to-head competition and whether the deal would illegally boost the eCommerce company's market share in the connected device market as well as the overall retail market, according to a report from Politico.
Amazon has offered to pay US$61 per share in cash for iRobot, including net debt, with the transaction subject to customary closing conditions, including shareholder approval and regulatory approval.
The company was founded in 1990, having been spun out of MIT's Artificial Intelligence Lab, with the Roomba robot vacuum cleaner launched in 2002, which sold over 30mln units in 2020. Co-founder Colin Angle remains on board as chief executive.
Amazon has aggressively pursued robotics in the decade since it acquired Kiva Systems, though its Robotics division is primarily focused on warehouse and fulfillment. Astro, a 'cheerful' robot not entirely focused on cleaning, was launched recently by Amazon.
Through Roomba's integration of Alexa functionality and use of Amazon Web Services servers, Amazon said it and iRobot have developed an increasingly close relationship over the past few years.
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