Amazon’s iRobot purchase sucks up formal competition concerns in EU | TechCrunch
European Union regulators have raised objections to Amazon’s proposed $1.7 billion acquisition of iRobot, the maker of Roomba vacuum cleaners. The European Commission expressed concerns about potential competition restrictions in the robot vacuum cleaner market. Amazon had announced its intention to acquire iRobot in August 2022, triggering regulatory scrutiny. While British regulators cleared the deal in June 2023, the European Commission initiated an investigation in July. Contrary to prior expectations, the Commission’s statement of objections suggests potential hurdles, stating that Amazon might have the capacity and incentive to harm iRobot’s competitors by delisting or reducing the visibility of rival robot vacuum cleaners on its platform.
Amazon now has the opportunity to respond to the objections and can request an oral hearing. The European Commission is set to make a final decision on the acquisition by February 14, 2024. In response, an Amazon spokesperson emphasized the company’s commitment to working with the Commission and addressing concerns. They argued that Amazon’s resources could enhance iRobot’s innovation and investment capabilities, ultimately benefiting consumers by lowering prices while promoting practical and inventive products.
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