acastro STK103 01

The FTC is investigating Amazon’s deals to buy One Medical and iRobot

According to reports from the Federal Trade Commission (FTC), Amazon is considering plans to buy 1Life Healthcare, the company behind robot vacuum maker iRobot and One Medical. politics And The Wall Street Journal. Amazon announced a $3.9 billion deal to buy One Medical in July and said it would buy iRobot for $1.7 billion just weeks later.

A Medical works as a Netflix-for-healthcare subscription service that gives users access to in-person and virtual appointments at 125 clinics across the US for $199 a year. Meanwhile, iRobot is best known for its line of Roomba robot vacuums, which with the rollout of iRobot OS have become even more adept at understanding users’ homes and their habits.

The acquisitions of both companies are in line with Amazon’s long-term goals of carving out its own lane in the healthcare industry, as well as collecting more data about its customers, which Amazon can do with Roomba’s home-mapping capabilities.

The FTC’s investigations could slow — or potentially stop — Amazon’s acquisition of both companies. FTC Chairwoman Lena Khan has been a vocal critic of Amazon and its practices. Amazon pushed back on Khan’s plans to take control of the company when she first assumed the role of chairwoman, and recently asked the FTC to limit its investigation and allow testimony from current CEO Andy Jassy and former CEO Jeff Bezos, calling it “burdensome.” “

Amazon’s bid to buy iRobot is facing similar scrutiny from the FTC. Sources close to the situation said politics The two companies are preparing for a “potentially lengthy, rigorous trial” to determine whether the merger violates antitrust laws. The FTC’s investigation reportedly focused on whether data provided by Roomba gives Amazon an unfair advantage in the retail industry and how its line of robot vacuums stacks up against Amazon’s existing smart home products, such as Ring and Alexa.

Shortly after announcing the potential 1Life merger, Amazon said it was shutting down its virtual health service, Amazon Care, at the end of the year. politics The FTC has indicated that the move could be viewed as anti-competitive because Amazon is buying one of Care’s potential competitors instead of competing with it.

identified by Journal, 1Life disclosed the FTC’s review of the acquisition in a filing with the Securities and Exchange Commission (SEC) on Friday. Amazon’s proposed acquisitions of 1Life and iRobot come after Amazon bought MGM for $8.45 billion.

Leave a Comment

Your email address will not be published.