The European Commission has expressed concern over Amazon’s proposed acquisition of iRobot, citing potential implications for competition in the robot vacuum cleaner market and the strengthening of Amazon’s position as an online marketplace provider. The EU regulator is investigating whether Amazon’s access to iRobot users’ data will grant the company an advantage in online services, advertising services, and other markets.
In response, Amazon spokesperson Alexandra Miller stated, “iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can provide the resources to accelerate innovation, invest in crucial features, and lower prices for consumers.”
The European Commission is set to make a decision on the matter by November 15th. Amazon announced its intention to acquire iRobot in August of last year. If the deal proceeds, the popular Roomba products would join Amazon’s lineup of smart home devices, which already includes Ring, Blink, and Eero. Amazon has also developed the widely-used Alexa voice assistant, which controls various smart home ecosystems.
Dave Limp, Amazon’s executive responsible for devices and services, expressed enthusiasm for the acquisition, 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’s investigation focuses on potential competition concerns. The UK regulator concluded that the deal would not raise competition issues in the country, considering iRobot’s numerous significant competitors in the market and the limited growth prospects for the robot vacuum cleaner market in the UK.
Meanwhile, the US Federal Trade Commission is also investigating the agreement between Amazon and iRobot. The Wall Street Journal reported last year that the regulator had requested documents from both companies regarding the deal. Additionally, a group of Democratic lawmakers has called on the FTC to initiate a formal investigation. According to the Financial Times, the US investigation is likely to center more on competition concerns rather than privacy issues.
As the European Commission delves into the details of Amazon’s potential acquisition of iRobot, the outcome will have implications for the future of competition in the robot vacuum cleaner market and the broader online services sector. The investigation will determine whether Amazon’s access to iRobot’s data provides an unfair advantage and if the deal ultimately proceeds or faces further regulatory scrutiny.