Amazon's proposed acquisition of iRobot, the maker of Roomba vacuum cleaners, is set to be blocked by the European Union's competition watchdog, according to the BBC. The decision deals a significant blow to the tech giant, which had already received clearance for the deal from the UK's Competition and Markets Authority (CMA). The CMA had deemed Amazon's position in the UK market as 'modest' and noted it faced several significant rivals.
The European Commission (EC) launched an investigation into the $1.7 billion (£1.4 billion) takeover in July 2023, expressing concerns that the tie-up could hinder competition. Regulators worry that Amazon might give Roomba preferential treatment on its e-commerce platform, making it difficult for other vacuum manufacturers to compete. The EC has a legal deadline of February 14 to issue its decision, but the 27 EU commissioners must reach a consensus before a final ruling is made.
News of the expected block caused iRobot shares to plummet 40% in after-hours trading. The acquisition had been seen as a lifeline for iRobot, which has struggled with declining sales. Matt Schruers, president of the Computer and Communications Industry Association, criticised the move, stating: 'If the objective is to have more competition in the home robotics sector, this makes no sense. Blocking this deal may well leave consumers with fewer options, and regulators cannot sweep that fact under the rug.'
