Shillong, July 7: The European Union (EU) regulators have initiated a comprehensive investigation into Amazon’s $1.7 billion purchase of iRobot, a company specializing in consumer robots, including the popular ‘Roomba’ robot vacuum cleaners.
The European Commission expressed concerns that the acquisition could lead to Amazon restricting competition in the robot vacuum cleaner (RVC) market and further solidifying its position as an online marketplace provider.
Preliminary findings indicate that the deal may allow Amazon to limit competition in the manufacturing and supply of RVCs, as well as strengthen its dominance in online marketplace services for third-party sellers, related advertising services, and other data-related markets.
Margrethe Vestager, executive vice-president in charge of competition policy, highlighted the dual role of Amazon as an online marketplace and a retailer, stating concerns that the acquisition could impede access to Amazon’s marketplace for iRobot’s rivals. The investigation will also examine whether Amazon would leverage data collected by iRobot to enhance its position as an online marketplace provider.
The European Commission now has 90 working days, until November 15, to reach a decision on the matter.
This EU probe follows the UK’s antitrust regulator, the Competition and Markets Authority (CMA), approving Amazon’s proposed acquisition of iRobot last month. The CMA determined that iRobot holds a modest market position in the UK’s robot vacuum cleaner supply sector and faces several significant competitors already.