iRobot, renowned for its Roomba vacuum cleaner, witnessed a staggering 17% drop in shares following a stern warning from the European Union’s antitrust regulator regarding Amazon’s proposed $1.7 billion acquisition. The European Commission, engaged in an in-depth investigation since July, aims to finalize its decision on the deal by February 14.

Expressing preliminary concerns, the commission asserted that the acquisition could potentially restrict competition within the robot vacuum cleaner market. In response, an Amazon spokesperson informed CNBC that the company is actively collaborating with the commission to address the identified issues, emphasizing a commitment to regulatory compliance.

iRobot, facing formidable competition in the vacuum cleaner sector, is recognized for its practical and inventive products. Amazon contends that the acquisition has the potential to propel iRobot’s innovation by providing resources and facilitating investment in crucial features. The tech giant aims to achieve this while simultaneously offering consumers reduced prices.

Following the EU antitrust warning, iRobot’s shares experienced a brief but significant decline, underscoring the uncertainty surrounding the deal’s fate. Conversely, Amazon’s shares witnessed a modest 1.4% increase in the wake of the announcement.

The proposed acquisition was initially disclosed by Amazon in August 2022, with a per-share valuation of $61. The agreement is currently under scrutiny by the U.S. Federal Trade Commission, adding another layer of complexity to the regulatory landscape. Notably, the UK’s Competition and Markets Authority provided a favorable opinion in June, stating that the deal wouldn’t result in a “substantial lessening of competition” in the UK.

As the European Commission progresses in its investigation, the market eagerly anticipates the final ruling and its potential ramifications for the trajectory of this high-stakes acquisition in the tech and home appliance industry.