EU warns Amazon over $1.7 billion deal to buy iRobot

European Union (EU) warns largest American multinational company Amazon over its $1.7 billion deal to buy iRobot. An American technology company iRobot Corporation designs and builds consumer robots.

EU officials have expressed to Amazon their concerns over the company’s proposed $1.7 billion acquisition of Rooba creator iRobot.

Amazon’s $1.7 billion deal to buy iRobot is running into some objections https://t.co/IVV6HKhinL
— The Verge (@verge) November 28, 2023

European Union’s objection over the Amazon-iRobot deal

European Commission states in a press release that it has informed Amazon of its initial judgment that its proposed acquisition of iRobot may limit competition in the market for robot vacuum cleaners.

EU antitrust regulators say Amazon's iRobot deal may restrict competition https://t.co/kNXfEZatWp pic.twitter.com/hJFaNiF8Ou
— Reuters (@Reuters) November 27, 2023

EU warns Amazon over $1.7 billion deal to buy iRobot

Amazon revealed its intention to acquire iRobot in August 2022. The proposed acquisition has since been examined by regulators with the European Commission announcing an investigation in July 2023.

British officials investigated this acquisition but later approved it in June. In September 2022, the Federal Trade Commission requested details regarding the deal from Amazon and iRobot.

EU warns Amazon over $1.7 billion deal to buy iRobot

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The European Commission’s statement of objections comes as somewhat of a surprise as Reuters reported last week that the deal was expected to receive unconditional clearance.

The European Commission also states in its statement of objections that Amazon may have the power and motive to foreclose iRobot’s competitors. By doing things like delisting rival robot vacuum cleaners or lowering their exposure on the Amazon marketplace.

Amazon can now respond to the objections statement and request an oral hearing. The Commission will reach a final conclusion on the acquisition on Feb 14, 2024.