The European Commission has raised concerns over Amazon’s proposed acquisition of iRobot, citing potential threats to competition in the robot vacuum cleaner market and Amazon’s position as an online marketplace provider. The EU regulator is investigating whether access to iRobot users’ data would give Amazon an advantage in online services, advertising, and other markets.
Amazonsperson Alexandra Miller defended the deal, emphasizing that iRobot offers innovative and practical products amidst spokesman fierce competition from other vacuum cleaner suppliers. Miller stated that Amazon’s resources could accelerate innovation, invest in crucial features, and ultimately lower prices for consumers.
The European Commission has until November 15 to make a decision on whether to block the agreement. Amazon announced its intention to acquire iRobot in August, with plans to integrate Roomba products into its existing line of smart home devices, which includes Ring, Blink, and Eero. Additionally, Amazon has developed the Alexa voice assistant, which controls various smart home ecosystems.
Dave Limp, an executive at Amazon, expressed enthusiasm for the collaboration, stating, “Excited to work with the iRobot team to build capabilities that make customers’ lives easier and more enjoyable.”
While the UK’s Competition and Markets Authority has already approved Amazon’s acquisition of iRobot, the European Commission remains cautious. The UK regulator concluded that the agreement would not raise competition concerns in the country, noting the presence of “several significant competitors” in the robot vacuum cleaner market. Moreover, the UK market for such products is relatively small and not expected to experience significant growth.
The US Federal Trade Commission is also investigating Amazon’s agreement with iRobot. The regulator had reportedly requested documents from both companies regarding the deal, primarily focusing on competition concerns rather than privacy issues. In response, a group of Democratic lawmakers has called for a formal investigation by the FTC. The investigation is expected to delve further into the potential impact on competition.
As the European Commission continues its investigation, the outcome will have significant implications for the future of the robot vacuum cleaner market and Amazon’s position in the online services industry. The regulatory scrutiny highlights the need to strike a balance between innovation, competition, and consumer protection in an evolving digital landscape.