Amazon’s acquisition of iRobot for $1.7 billion is undergoing a full-scale antitrust investigation by the EU, following the company’s recent approval of the deal in the UK.
In August of last year, Amazon announced its acquisition of iRobot, a move aimed at expanding its range of smart devices, including the popular Alexa voice assistant, smart thermostats, security devices, and wall-mounted smart displays. According to Reuters, iRobot first introduced its Roomba robot vacuum in 2002.
IRobot experienced a significant drop of approximately 10% in its shares, marking its largest percentage decrease since February of last year. In addition, Amazon shares decreased slightly following the release of the Reuters story.
Also Read: UK Watchdog OKs Amazon’s $1.7B Buy Of Roomba-Maker iRobot
The European Commission will conduct a four-month investigation after concluding its preliminary review of the deal on July 6th, according to sources.
According to a source, Amazon is not expected to provide solutions during the initial phase. The company has a chance to persuade the EU competition watchdog in the coming days that the deal promotes competition, but the likelihood of success is low.
Both the Commission and Amazon refrained from commenting. Amazon has previously stated that the vacuum cleaner market is highly competitive, with a significant presence of Chinese companies.
The UK competition agency recently ruled in favor of Amazon, stating that the company did not unfairly disadvantage competitors in the robot vacuum cleaner market.
