Amazon’s latest robotics, healthcare buys have the FTC asking more questions

Illustration by Alex Castro / The Verge

According to reports from The Wall Street Journal and Politico, the FTC is looking into Amazon's plan to acquire iRobot and One Medical. In July, Amazon said it would acquire One Medical for $3.9 billion and just weeks later, it would acquire iRobot for $1.7 billion.

One Medical is a kind of subscription service that gives customers access to in-person and virtual appointments at 125 clinics for a fee. iRobot has a line of robot vacuums that are known for their ability to understand users' homes and their habits with the release of iRobot OS.

The acquisitions of both companies align with Amazon's long-term goal of carving out its own lane in the healthcare industry and collecting more data about its customers.

Amazon's acquisition of both companies could be stopped by the FTC. The chairwoman of the FTC has been critical of the company. When she took on the role of Chairwoman, Amazon asked the FTC to limit its investigation and pursuit of testimony from current CEO Andy Jassy and former CEO Jeff Bezos, saying it was burdensome.

The FTC is scrutinizing Amazon's attempt to buy iRobot. According to sources close to the situation, both companies are preparing for a lengthy investigation to see if the merger is legal. The FTC is looking into whether the data provided by Roomba gives Amazon an unfair advantage in the retail industry and how the line of robot vacuums would fit in with Amazon's existing smart home products.

Amazon said it is shutting down its virtual health service at the end of the year. The FTC could see this as anti-competitive since Amazon is buying out one of Care's potential competitors instead of competing with it.

The FTC review of the acquisition was disclosed in a filing with the SEC by 1 Life. The proposed acquisitions of 1Life and iRobot are related to the acquisition of MGM by Amazon.