European Union regulators have issued a statement of objection to Amazon's proposed $1.7 billion acquisition of Roomba maker iRobot. The European Commission said in a press release that it "has informed Amazon of its preliminary view that Amazon's proposed acquisition of iRobot could restrict competition in the market for robot vacuum cleaners."
Amazon announced plans to acquire iRobot in August 2022. The acquisition has since come under regulatory scrutiny, with the European Commission disclosing an investigation in July 2023. British regulators scrutinized the deal but approved it in June. The FTC asked Amazon and iRobot to provide information about the deal in September 2022.
The European Commission's statement of objection was somewhat surprising, as Reuters reported last week that the deal would be approved unconditionally.
In its statement of objections, the European Commission also said Amazon may have the "ability and incentive" to squeeze out iRobot's competitors by delisting rival robot vacuum cleaners or reducing their visibility on Amazon's marketplace. Amazon can now respond to the statement of objections and request an oral hearing. The committee will make a final decision on the transaction by February 14, 2024.
Amazon spokesperson Alexandra Miller said in a statement: "We will continue to work with the European Commission and focus on resolving the issues it raises and any concerns identified at this stage. iRobot faces fierce competition from other vacuum cleaner suppliers, and it offers products that are both practical and innovative. We believe Amazon can provide companies like iRobot with the resources to accelerate innovation and invest in key features while lowering prices for consumers."
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