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EU Regulators Cautious About Amazon’s Acquisition of iRobot
November 28, 2023
Amazon has hit a stumbling block in its bid to acquire Roomba manufacturer iRobot. The proposed $1.7 billion deal has caught the eye of European Union (EU) regulators, who have voiced their concerns regarding the potential impact on the competition within the robot vacuum cleaners’ market.
This deal has been in the works since at least August 2022 when Amazon announced plans to acquire iRobot, a deal that quickly found itself under regulatory examination. As a part of the ongoing scrutiny, the European Commission initiated an investigation into the landmark acquisition in July 2023.
While other global regulators have had their say on the deal, the stance of EU regulatory bodies carries significant weight. British regulators considered the deal but gave it the green light in June last year, and the Federal Trade Commission asked for additional information from Amazon and iRobot back in September 2022.
The recent statement of objections from the European Commission has taken some by surprise, primarily given the fact that reports from Reuters last week suggested the deal was on track for unconditional approval. The statement also contained theories about Amazon’s possible actions post-acquisition. The Commission speculated that Amazon could leverage its newly acquired assets to disadvantage iRobot’s competitors. This could be achieved through tactics such as delisting competitor products or reducing their visibility on Amazon’s marketplace.
“We continue to work through the process with the European Commission and are focused on addressing its questions and any identified concerns at this stage. iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers.”
Alexandra Miller, Amazon spokesperson, via The Verge
Amazon is now in a position to respond to these objections and even has the option to request an oral hearing. With the ultimate decision from the Commission set to land on Valentine’s Day 2024, Amazon will certainly be hoping for some love from EU regulators regarding this billion-dollar deal.
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