European Union regulators have sent a statement of objections to Amazon about the company’s proposed $1.7 billion acquisition of Roomba maker iRobot. In a press release, the European Commission says that it “has informed Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robot vacuum cleaners.”
In August 2022, Amazon announced its intention to acquire iRobot. However, the proposed acquisition has faced regulatory scrutiny, particularly from the European Commission, which disclosed an investigation in July 2023. While British regulators examined the deal and granted clearance in June, the Federal Trade Commission had requested information from both Amazon and iRobot about the transaction in September 2022.
The recent statement of objections from the European Commission comes as a surprise, especially given earlier reports that indicated the deal was on track to receive unconditional approval. This development suggests that there may be concerns or issues that the European Commission wishes to address before finalizing its decision on the acquisition. European Union regulators
The European Commission, in its statement of objections, has raised concerns about Amazon’s potential ability and incentive to foreclose iRobot’s rivals. This could involve actions such as delisting rival robot vacuum cleaners or reducing their visibility on the Amazon marketplace. Amazon has the opportunity to respond to these objections and can request an oral hearing to present its case. The Commission is set to make a final decision on the proposed acquisition by February 14th, 2024. This indicates that the European regulatory body is carefully considering the potential anticompetitive aspects of the deal before reaching a conclusion.