James Comer, chair of the Home Committee on Oversight and Accountability, is initiating an inquiry into the US Federal Commerce Fee (FTC)’s position within the failed $1.4bn merger between Amazon and iRobot.
The proposed merger was deserted by Amazon and the robotic vacuum producer in January 2024 after it confronted scrutiny from each European and US antitrust regulators.
The settlement for the merger, initiated in August 2022, underwent a preliminary evaluation, after which the FTC requested further info on 19 September 2022.
After the FTC’s investigation announcement, it was reported that the European Fee (EC) would additionally study the proposal.
On 6 July 2023, the EC launched an in depth investigation into the merger. On 18 January 2024 it determined to dam it.
An FTC Commissioner then spoke at an antitrust convention in Brussels on 31 January, indicating that the FTC was ready to do the identical.
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In a letter addressed to the FTC, Comer accused the FTC of collaborating with the EC to thwart the Amazon-iRobot merger.
James Comer mentioned: ” The FTC’s actions point out to American companies that the FTC will work exterior of US antitrust regulation through the use of the EC to understand its desired outcomes.
“As a substitute of defending American pursuits within the international market, the FTC seems to have actively coordinated with a international authority to dam a merger which might have saved American jobs and promoted American innovation and standing in a significant market.”
Following the collapse of the deal, iRobot introduced a big restructuring plan in January 2024 to cut back prices.
This consists of reducing 31% of its workforce – 350 jobs. CEO Colin Angle additionally departed from the corporate.
