EU Regulators Issue Statement of Objections to Amazon’s Proposed $1.7 Billion Acquisition of iRobot

European Union regulators have sent a statement of objections to Amazon regarding its proposed $1.7 billion acquisition of the robotic vacuum cleaner manufacturer iRobot.

The European Commission stated in a press release, “We have informed Amazon of our preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robotic vacuum cleaners.”

Amazon announced in August 2022 its intention to acquire iRobot, and since then, the proposed acquisition has been under regulatory scrutiny, the European Commission revealed in July 2023 that it was conducting an investigation.

While British regulatory bodies have looked into the deal and approved it in June, the Federal Trade Commission in the United States sought information about the deal from iRobot and Amazon in September 2022.

The European Commission’s statement of objections comes somewhat as a surprise, as Reuters reported last week that the deal was expected to gain unconditional approval. The Commission’s objections suggest that Amazon might have the ability and incentive to prevent competitors of iRobot by reducing the visibility of competing robotic vacuums or delisting them on the Amazon marketplace.

Amazon now has the opportunity to respond to the statement of objections and request an oral hearing. The Commission is set to make a final decision on the deal by February 14, 2024.

Amazon spokesperson Alexandra Miller said in a statement, “We continue to work cooperatively with the European Commission and are focused on addressing their questions and any specific concerns at this stage.”

Miller added, “iRobot faces strong competition from other vacuum cleaner suppliers and offers practical and innovative products, we believe we can provide a company like iRobot with the necessary resources to accelerate innovation and invest in important features while lowering prices for consumers.”

iRobot’s shares fell by 17 percent after the European antitrust watchdog’s warning that the e-commerce giant’s planned acquisition of the robotic vacuum cleaner manufacturer raises competition concerns.

The Commission’s announcement came after iRobot’s shares had increased by 39 percent following a Reuters report that the deal was expected to win unconditional approval from the European antitrust watchdog.