The European Commission has expressed concerns over Amazon’s proposed acquisition of iRobot, citing potential implications for competition in the robot vacuum cleaner market and the strengthening of Amazon’s position as an online marketplace provider. The EU regulator is conducting an investigation to determine whether access to iRobot users’ data would provide Amazon with an unfair advantage in online services, including advertising, and other related markets.
Amazon spokeswoman Alexandra Miller defended the deal, stating, “iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can offer such a company the resources to accelerate innovation and invest in important features while lowering prices for consumers.”
The European Commission is expected to make a decision on whether to block the agreement by November 15. Amazon initially announced its intention to acquire iRobot in August of last year. If the deal goes through, iRobot’s Roomba products would join Amazon’s lineup of smart home devices, which already includes popular brands such as Ring, Blink, and Eero. Amazon has also developed the Alexa voice assistant, which controls various aspects of the smart home ecosystem.
Following the announcement of the acquisition plans, Amazon’s Dave Limp expressed his enthusiasm for working with the iRobot team to develop capabilities that enhance customers’ lives and make them more enjoyable.
While the UK’s Competition and Markets Authority has already approved Amazon’s acquisition of iRobot, the European Commission’s investigation is ongoing. The UK regulator concluded that the deal would not raise competition concerns within the country due to the presence of several significant competitors in the robot vacuum cleaner market and the relatively small size of the UK market, which is not expected to experience substantial growth.
In addition to the European Commission’s investigation, the US Federal Trade Commission is also scrutinizing Amazon’s agreement with iRobot. The Wall Street Journal reported last year that the regulator had requested both companies to provide documents pertaining to the deal. Furthermore, a group of Democratic lawmakers has called on the FTC to launch a formal investigation, with a focus on competition rather than privacy concerns, according to the Financial Times website.
As the investigations continue, the outcome of the European Commission’s review will determine the fate of Amazon’s acquisition of iRobot in Europe. The decision will have implications not only for the robot vacuum cleaner market but also for the competitive landscape of the online services and advertising sectors.