iRobot, recognized for its Roomba vacuum cleaner, witnessed a 17% decline in shares following a cautionary note from the European Union’s antitrust regulator regarding Amazon’s proposed $1.7 billion acquisition. The European Commission, conducting a thorough investigation since July, signaled potential competition concerns and is poised to deliver a verdict by February 14.
The commission’s provisional stance asserts that Amazon’s acquisition of iRobot might curtail competition within the robot vacuum cleaner market. An Amazon spokesperson assured CNBC that the company is actively collaborating with the commission to address the issues identified during the investigation.
Facing fierce competition in the vacuum cleaner sector, iRobot, known for its practical and innovative products, could potentially benefit from Amazon’s resources. The tech giant, through its spokesperson, expressed the belief that the acquisition could accelerate innovation, invest in essential features, and ultimately lead to reduced prices for consumers.
The market response was swift, with iRobot shares experiencing a brief stall on Monday afternoon, juxtaposed against a 1.4% rise in Amazon shares. The acquisition deal, unveiled by Amazon in August 2022 at $61 per share, is not only under EU scrutiny but is also subject to review by the U.S. Federal Trade Commission. Interestingly, the UK’s Competition and Markets Authority had earlier conveyed in June that the agreement would not substantially impede competition in the UK.
As the EU antitrust investigation progresses, investors and industry observers await the final ruling, cognizant of the potential impact on both iRobot’s market standing and Amazon’s strategic acquisitions.