EU antitrust regulator intends to block Amazon’s iRobot acquisition: WSJ

Published Fri, Jan 19, 2024 · 07:13 AM

Amazon did not offer remedies to the European Union antitrust regulator until the Jan 10 deadline to address concerns the deal could reduce competition and reinforce Amazon’s e-commerce platform dominance. PHOTO: REUTERS

THE European Union’s competition watchdog plans to block Amazon.com’s US$1.4-billion deal for robot vacuum maker iRobot, The Wall Street Journal said on Thursday, citing people familiar with the matter.

Shares of the Roomba vacuum maker plunged 36 per cent to US$15 in trading after the bell.

Officials from the European Commission met Amazon’s representatives on Thursday to discuss the deal, the report said.

The US tech giant did not offer remedies to the European Union antitrust regulator until the Jan 10 deadline to address concerns the deal could reduce competition and reinforce Amazon’s e-commerce platform dominance.

WSJ reported that Amazon was informed during the meeting that the deal was likely to be rejected.

Amazon declined to comment on the report.

Amazon has not offered remedies to EU concerns over iRobot deal

In the coming weeks, the FTC, led by commissioner Lina Khan, plans to file a far-reaching antitrust suit focused on Amazon’s core online marketplace.

Amazon to face its biggest challenge yet from the FTC

Amazon announced the takeover in August last year to expand its portfolio of smart devices, which include the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.

Amazon's iRobot deal faces EU antitrust investigation: sources

The iRobot Roomba i7+ robot vacuum cleaner. Amazon wnts to expand its stable of smart-home devices, which include the Alexa voice assistant, smart thermostats, security devices, and wall mounted smart displays.

UK clears Amazon's US$1.7 billion deal for Roomba-maker iRobot

Britain’s Competition and Markets Authority (CMA) said it is now considering whether the Amazon’s planned US$1.7 billion acquisition of iRobot could reduce competition in the connected device market.

UK antitrust regulator looks at Amazon’s takeover of vacuum maker iRobot

EU regulators have sent Amazon a series of detailed questions over the proposed transaction, indicating that they are gearing up for a formal probe, the report said.

EU set to investigate Amazon’s US$1.7 billion iRobot deal: FT

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The e-commerce giant disclosed its plans to buy iRobot in August 2022, as it looks to add to its portfolio of smart devices, which include the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.

The European Commission, which serves as the EU’s competition watchdog, had until Feb 14 to either approve or reject the deal. REUTERS

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