EU Regulators are raising concerns about Amazon's $1.7 billion acquisition of iRobot, the maker of Roomba. The European Commission has issued a statement of objections, expressing preliminary worries about potential competition restrictions in the robot vacuum cleaners market.
Objecting iRobot Acquisition
Regulators have issued a statement of objections to Amazon regarding its planned $1.7 billion acquisition of Roomba's manufacturer, iRobot. The European Commission has conveyed its initial perspective to Amazon, indicating concerns that the proposed acquisition of iRobot might impede competition in the robot vacuum cleaners market.
The Verge reported that the European Union regulators have raised concerns with Amazon regarding its intended $1.7 billion purchase of iRobot. The European Commission stated that it has preliminarily informed Amazon that the proposed acquisition might hinder competition in the robot vacuum cleaner market.
Amazon had announced its plan to acquire iRobot in August 2022, and the deal has been under regulatory scrutiny since then. While British regulators cleared the deal in June, the European Commission initiated an investigation in July 2023.
In September 2022, the Federal Trade Commission requested information from both Amazon and iRobot regarding the acquisition.
Surprisingly, the European Commission's statement of objections contradicts earlier reports, such as Reuters' claim last week that the deal was on track to receive unconditional approval.
The Federal Trade Commission requested information about the deal from Amazon and iRobot in September 2022. The European Commission's statement of objections comes as somewhat of a surprise, as Reuters reported last week that the deal was set to win unconditional approval.
The European Commission, in its objections, suggests that Amazon could potentially hinder iRobot's competitors by actions like removing rival robot vacuum cleaners from the marketplace or decreasing their visibility.
Amazon now has the opportunity to respond to these objections and can request an oral hearing. The European Commission is slated to make a final decision on the deal by February 14th, 2024.
Represented by spokesperson Alexandra Miller, Amazon affirmed ongoing collaboration with the European Commission in addressing questions and concerns. iRobot, amidst fierce competition in the vacuum cleaner market, is recognized for its practical and innovative products.
Amazon sees the potential to provide iRobot with resources for innovation, investment in crucial features, and reduced consumer prices.
Understanding the Market
The Commission has undertaken an extensive examination to comprehend the market dynamics and assess the possible consequences of the agreement. This investigation encompasses a thorough analysis of internal documents submitted by the involved parties.
Additionally, it involves soliciting perspectives from various market stakeholders, including suppliers of Robotic Vacuum Cleaners (RVCs) and other smart home devices, as well as providers of online sales platforms.
Throughout both the preliminary and in-depth investigations, the Commission has maintained close collaboration with other competition authorities. This cooperative approach will persist throughout the remaining stages of the in-depth investigation.
