EU Set to Block Amazon's Acquisition of iRobot
The European Union is expected to obstruct Amazon's acquisition of iRobot, the manufacturer of Roomba vacuums.
The UK's regulatory body previously approved the deal, acknowledging Amazon's modest UK market presence and existing competition. Despite this, the EU Competition and Markets Authority is concerned the merger may hinder competition by favoring Roomba on Amazon's platform.
Amazon's $1.7 billion bid for iRobot, announced in August 2022, aimed at bolstering its smart home device portfolio. However, the EU's anti-competitive fears have led to a probe by the European Commission, with a decision due by February 14.
iRobot's stock plummeted following news from the Wall Street Journal about the EU's potential block, which could derail the positive outlook for iRobot that has faced sales challenges.
Critics argue that halting the deal might limit consumer options and stifle competition in the home robotics market, as suggested by CCIA's president, Matt Schruers.
In the UK, Roomba vacuums are priced around £1,648.
Amazon's $1.7 billion bid for iRobot, announced in August 2022, aimed at bolstering its smart home device portfolio. However, the EU's anti-competitive fears have led to a probe by the European Commission, with a decision due by February 14.
iRobot's stock plummeted following news from the Wall Street Journal about the EU's potential block, which could derail the positive outlook for iRobot that has faced sales challenges.
Critics argue that halting the deal might limit consumer options and stifle competition in the home robotics market, as suggested by CCIA's president, Matt Schruers.
In the UK, Roomba vacuums are priced around £1,648.