The acquisition of iRobot and One Medical by Amazon may take longer than expected. The Federal Trade Commission is investigating both acquisitions, according to Politico and The Wall Street Journal.
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The transactions, which were announced within a month of each other, are valued at $1.7 billion and $3.9 billion, respectively, and have the potential to reshape two markets at the same time.
According to The Journal, One Medical parent company 1Life Healthcare disclosed on Friday that the FTC was investigating its proposed merger with Amazon. Politico reported the same day that the Commission had begun an investigation into Amazon’s acquisition of iRobot.
Given the detailed questions the FTC sent to the two companies, a formal investigation is likely, according to the outlet. According to reports, Amazon and iRobot are preparing for a “potentially lengthy [and] arduous investigation.”
According to one source who spoke with Politico, the review is “wide-ranging,” with the goal of determining whether the deal would give Amazon an unfair advantage in the connected devices and retail markets.
At the very least, the FTC could easily postpone Amazon’s finalization of the deals for up to a year. A worst-case scenario for Amazon would be Commission lawsuits.
NVIDIA dropped its proposed $40 billion acquisition of ARM at the start of the year after the FTC sued to block the deal over concerns that it would stifle competition in a variety of markets.
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Whatever happens next, Amazon will not have an easy road ahead of it. Lina Khan, the FTC Chair, is a well-known corporate critic. She became well-known in legal circles after writing an article titled “Amazon’s Antitrust Paradox.”
