The European Commission has expressed concerns regarding Amazon’s proposed acquisition of iRobot, fearing that the deal could potentially stifle competition in the robot vacuum cleaner market and further solidify Amazon’s position as a dominant online marketplace provider. The EU regulator is investigating whether the access to iRobot users’ data would provide Amazon with an unfair advantage in online services, advertising, and other related markets.
Amazon, in response, argues that iRobot offers innovative and practical products, facing fierce competition from other vacuum cleaner suppliers. The tech giant believes that by joining forces, Amazon can provide iRobot with the necessary resources to accelerate innovation, invest in important features, and ultimately lower prices for consumers. Amazon spokeswoman Alexandra Miller expressed optimism about the potential benefits of the acquisition.
The European Commission is set to make a decision on the matter by November 15. Amazon initially announced its intention to acquire iRobot in August, with the aim of incorporating Roomba products into its line of smart home devices, which already includes Ring, Blink, and Eero. Amazon has also developed the popular Alexa voice assistant that controls smart home ecosystems.
Notably, the UK’s Competition and Markets Authority has already approved Amazon’s acquisition of iRobot. The regulator concluded that the agreement would not pose competition concerns in the country, citing the presence of several significant competitors in the robot vacuum cleaner space and the relatively small size of the UK market, which is not expected to experience significant growth in the future.
In addition to the European Commission, the US Federal Trade Commission (FTC) is also investigating the Amazon-iRobot deal. Last year, The Wall Street Journal reported that the FTC had requested both companies to provide documents related to the acquisition. Furthermore, a group of Democratic lawmakers has called on the FTC to conduct a formal investigation into the deal, with a particular focus on competition concerns rather than privacy issues, as noted by the Financial Times.
The outcome of the investigations by the European Commission and the FTC will significantly impact the future of the proposed acquisition. The concerns raised by regulators highlight the need for thorough examination of the potential implications on market competition and the role of data access and privacy in such deals. As the investigations unfold, stakeholders and industry observers await the final decisions and their consequences for the evolving landscape of smart home technology and e-commerce.
