The House Oversight Committee's head announced Wednesday that he intends to investigate the Federal Trade Commission's (FTC) work with the European Commission (EC) in Amazon-iRobot's $1.4 billion deal, which failed in January due to opposition from both European and US antitrust regulators.

FTC's Probe in Blocking The Amazon-iRobot Merger

Chairman James Comer investigated the obstruction of the US-based iRobot Corporation and Amazon.com, Inc.'s merger. He requested documents and communications exchanges between the FTC and regulators in a letter addressed to the FTC's Chair, Lina Khan.

Following the FTC's announcement of its investigation, reports surfaced about EC looking into the proposed acquisition of iRobot by Amazon, which it announced on July 6, 2023. Subsequently, reports indicated that the EC informed Amazon of its intention to block the merger by January 18, 2024. Comer remarked that the actions of the FTC implied that the FTC is willing to bypass US antitrust laws by collaborating with the EC to achieve its desired outcomes.

The investigation marks the most recent development in the Oversight Committee's pattern of alleged power abuse and disregard for the rule of law and due process under Chair Khan's leadership at the FTC. Comer also oversees the FTC's purportedly questionable engagement with foreign officials to prevent a merger between Illumina, Inc. and GRAIL. In prior correspondences to the FTC, Comer cautioned that these actions undermined US business interests and suggested that the FTC has exceeded its mandate of safeguarding American consumers and the domestic marketplace.

Comer further expressed that rather than safeguarding American interests in the global market, it appears that the FTC collaborated with a foreign authority to obstruct a merger that could have preserved American jobs and advanced American innovation and influence in a critical market.

READ ALSO: US FTC Blocks Coach Michael Kors Merger, Citing Elimination of "Direct Head-to-Head Competition"

The FTC, Amazon, and iRobot all declined to provide immediate comments.

The Failed Amazon-iRobot Merger

Following the failed deal, iRobot announced in January a substantial restructuring plan aimed at cutting costs. This included slashing approximately 31% of its workforce, or 350 jobs, and its founder, Colin Angle, resigning from his position as CEO.

In January, Amazon stated that the deal had no feasible path to regulatory approval in the European Union.

In January, Margrethe Vestager, the EU's antitrust chief, stated that their thorough investigation indicated that acquiring iRobot would have allowed Amazon to hinder iRobot's competitors by limiting or weakening access to Amazon stores. That same month, a source informed Reuters that the FTC was ready to reject Amazon's deal before the companies withdrew.

Amazon, the world's largest online retailer, is known for its ownership of Alexa and Ring. Through the acquisition, Amazon aimed to broaden its range of smart home devices and expand into the virtual healthcare sector.

In January, Amazon and iRobot announced their mutual decision to terminate the acquisition agreement they had previously announced and signed on August 4, 2022, which would have enabled Amazon to invest in ongoing innovation by iRobot and assist iRobot in reducing prices on products that customers already enjoy.

RELATED ARTICLE: Amazon CEO Accused of Breaking Labor Law, Ordered to "Cease and Desist" Amid Anti-Union Remarks