Antitrust Aggression: How the FTC is Hurting Companies and Consumers
When iRobot’s Roomba vacuum cleaner entered households in 2002, it was a glimpse of a future where innovation and technology worked together to help keep our homes clean. Nearly two decades later, the pioneering brand announced that its cofounder is stepping down and around 31% of its workforce will be laid off. While this is partially a result of market competition, overzealous regulators ensured that Roomba couldn’t recharge.
In 2023, Amazon announced a deal to purchase iRobot, giving a lifeline to the struggling company. The purchase came as part of Amazon’s larger initiative to offer a range of hardware products that can connect to each other and work together, creating a “smart home.” Had the deal been successful, iRobot’s technology would have received crucial investment to be able to improve and compete within its industry.
Unfortunately for the employees and consumers of iRobot, the deal was abandoned due to aggression by the Federal Trade Commission (FTC) and other regulatory bodies. When the deal was first announced, the FTC informed Amazon of its intentions to sue to block the acquisition. Later, the FTC applauded the breakdown of the deal—the very breakdown which laid off 350 American jobs and pressed the final nail into an American company’s coffin. This all occurred while one of the largest antitrust lawsuits of the 21st century by the FTC against Amazon unfolded in the background.
This incident marks just another case of the FTC acting ideologically with little concern for American consumers or businesses. Other examples include the FTC preventing the merger of Spirit Airlines and Jetblue, which would have allowed for more competition for larger carriers in the airline space, and stalling to approve the Kroger/Albertsons merger, resulting in huge stock drops for both companies.
America is home to some of the most successful tech companies in the world because of an entrepreneurial spirit of innovation, not because of federal regulators. The FTC should prioritize American consumers, companies, and the tradition of ingenuity and competition rather than using intimidation and litigation to prevent progress.