The European Commission has expressed concerns over Amazon’s proposed acquisition of iRobot, fearing that the deal could result in limited competition within the robot vacuum cleaner market and strengthen Amazon’s position as an online marketplace provider. The EU regulator is currently investigating whether the access to iRobot users’ data would provide Amazon with an advantage in online services, including advertising, and other markets.
In response to the investigation, Amazon spokeswoman Alexandra Miller stated, “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 has until November 15th to decide whether to block the agreement. Amazon announced its intention to acquire iRobot in August of last year. If the deal goes through, iRobot’s Roomba products would join Amazon’s existing line of smart home devices, which already includes Ring, Blink, and Eero. Additionally, Amazon has developed the Alexa voice assistant, which serves as the control center for its smart home ecosystem.
Following the announcement of the acquisition plans, Amazon’s Dave Limp expressed excitement about working with the iRobot team to develop capabilities that enhance customers’ lives and bring them greater enjoyment.
While the acquisition of iRobot by Amazon has already been approved by the UK’s Competition and Markets Authority, the deal is also being investigated by the US Federal Trade Commission (FTC). The FTC has demanded documents from both companies to confirm information regarding the agreement. In addition, a group of Democratic lawmakers has called for a formal investigation by the FTC, with a focus on competition concerns rather than privacy issues, as reported by the Financial Times.
As the European Commission investigates the potential consequences of this acquisition, it remains to be seen whether Amazon’s proposed deal with iRobot will be permitted or face further scrutiny and potential restrictions. The outcome of this investigation will have significant implications for the robot vacuum cleaner market, competition in the online services sector, and the future of Amazon’s expansion into the smart home industry.
