According to the reports from Politico and the wall street journal, the Federal Trade Commission (FTC) is investigating Amazon’s plan to come by the Robot vacuum maker iRobot and the 1life healthcare company. However, Amazon announced a $3.9 billion deal to buy One Medical in July and told it would acquire iRobot for $1.7 billion.
One Medical gives out a Netflix-for-healthcare subscription service that offers customers access to in-person and virtual appointments at the 125 clinics across the United States for $199 per year. For the present time, iRobot’s call for its line of Roomba robot vacuums that have only grown more adept at understanding users’ homes and their daily activities with the rollout of iRobot OS.
The assets of both companies align with Amazon’s long-term goals of carving out its lane in the healthcare industry. Along with these, they collect more data about their customers, which Amazon does with Roomba’s Home-Mapping capabilities.
Moreover, the FTC’s investigations become slow or potentially stop Amazon’s acquisition of both companies. The Chairwoman of FTC, Lina Khan, has been a vocal critic of Amazon and its practices. In addition, Amazon pushed back against Khan’s plans to manage the company when she took the place of chairwoman. Recently, she asked the FTC to limit its investigation, and the purist of testimony from the present CEO, Andy Jassy, and the ex-CEO, Jeff Bezos, called it burdensome.
Amazon’s bid was planning to buy an iROBOT fronting the same survey issue from the FTC. However, the sources close to the situation said by Politico that both organizations are preparing for the potentially lengthy and arduous investigation to view if the merger violates the antitrust laws. However, the FTC’s research said that reportedly focused on whether the data proved by Roomba offers Amazon an unfair benefit in the retail industry. As a result, the line of robot vacuums would fit in it with Amazon’s existing intelligent gadgets such as Alexa and Ring.
After the announcement of the 1Life merger, Amazon said that its plans to stunt down its virtual health service as this is the end of Amazon care. However, Politico shouts that the FTC might see this move as anti-competitive. Meanwhile, Amazon is simply buying out of care’s potential competitiveness rather than competing with it.
According to the Journal, on Friday, 1Lifr disclosed the FTC’s review of the acquisition in a filing with the securities and the exchange commission. However, Amazon’s move to acquire 1life and iRobot came after Amazon bought out MGM for $8.45 billion.