Amazon’s acquisition of iRobot faces challenges from EU antitrust authorities

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AmazonThe US$1.7 billion (nearly Rs.14,100 billion) takeover of the robot vacuum cleaner maker. i robot could reduce competition and strengthen Amazon’s position as a provider of online marketplaces, EU antitrust authorities warned on Thursday.

The European Commission has launched a full investigation and will decide by November 15 whether to approve or block the deal.

“We continue to work through the process with the European Commission and at this stage are focused on responding to their questions and any concerns identified,” an Amazon spokesman told Reuters.

Antitrust authorities around the world have stepped up their scrutiny of big tech buying up smaller competitors, concerned about data accumulation by a few companies and big players exploiting their dominance into new markets.

The acquisition, announced last August, would add iRobot’s Roomba robot vacuum to Amazon’s portfolio of smart devices, which includes the alexa Voice Assistant, Smart Thermostats, Security Devices and Wall Mounted Smart Displays.

IRobot made its first Roomba robot vacuum in 2002. Amazon had previously said that the vacuum cleaner market is very competitive and there are many Chinese suppliers.

“The Commission is concerned that the transaction would allow Amazon to restrict competition in the robot vacuum cleaner market and strengthen its position as an online marketplace provider,” the EU executive said.

“The Commission worked closely with other competition authorities during the initial investigation and will continue to cooperate during the in-depth investigation (…). The opening of an in-depth investigation does not prejudge the outcome of the investigation.”

The Amazon spokesperson also said the company “can provide a company like iRobot with the resources to accelerate innovation and invest in key features while driving down prices for consumers.”

The EU competition authority’s decision, confirming a Reuters report last month, comes a month after the UK competition authority unconditionally approved the deal following a preliminary review.

© Thomson Reuters 2023


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