The European Commission has expressed “concern” about Amazon’s proposed acquisition of iRobot, raising fears that the deal could lead to a restriction of competition in the robot vacuum cleaner market and strengthen Amazon’s position as a service provider in online markets. The EU regulator is currently investigating whether access to iRobot users’ data would give Amazon an unfair advantage in online services, advertising and other related markets.
Amazon spokeswoman Alexandra Miller said in defense of the deal: “iRobot offers practical and inventive products in the highly competitive vacuum cleaner market. We believe Amazon can provide the resources needed to accelerate innovation, invest in critical features and lower prices for consumers.”
The European Commission has until Nov. 15 to decide whether to block the agreement. Amazon announced its intention to acquire iRobot in August with plans to integrate Roomba products into its line of smart home devices, which already includes popular brands such as Ring, Blink and Eero. Amazon has also developed the Alexa voice assistant, which plays a central role in managing the smart home ecosystem.
Amazon’s acquisition of iRobot has already received approval from the UK’s Competition and Markets Authority. The regulator has decided that the agreement will not cause competition concerns in the UK, given that iRobot faces significant competition in the market and that the robot vacuum cleaner market in the UK is relatively small and is not expected to expand significantly in the future.
In addition to the European investigation, the U.S. Federal Trade Commission is also scrutinizing the deal between Amazon and iRobot. The Wall Street Journal reported last year that the regulator had requested documents from both companies to verify information about the acquisition. According to the Financial Times website, Democratic lawmakers have also called on the FTC to conduct a formal investigation, focusing on competition issues rather than privacy concerns.
The results of the European Commission’s investigation will have a significant impact on the future of the deal between Amazon and IRobot. As the investigation progresses, regulators will carefully assess the potential impact on competition in the robot vacuum cleaner market and related industries. The decision will determine the competitive landscape and whether the deal can proceed as planned or face regulatory hurdles.