Amazon’s iRobot Takeover Faces EU Antitrust Investigation, Sources Say

Amazon’s $1.7 billion (roughly Rs. 13,500 crore) acquisition of robotic vacuum cleaner maker iRobot faces a full-scale EU antitrust investigation, folks aware of the matter mentioned, weeks after the US on-line retail large received UK approval for the deal.

Amazon introduced the takeover in August final yr to increase its portfolio of good units, which embody the Alexa voice assistant, good thermostats, safety units and wall-mounted good shows. IRobot made its first Roomba robotic vacuum in 2002.

IRobot shares fell about 10 p.c, their largest proportion drop since February final yr, whereas Amazon shares trimmed positive aspects after the Reuters story was revealed.

The European Fee is scheduled to launch a four-month investigation following the top of its preliminary overview of the deal on July 6, the folks mentioned.

Amazon is unlikely to supply cures throughout this preliminary part, one of many folks mentioned. It has a last shot within the subsequent few days at convincing the EU competitors watchdog that the deal is pro-competitive, though the percentages in opposition to it are excessive.

The Fee and Amazon declined to remark. Amazon has beforehand mentioned the vacuum cleaner market may be very aggressive, with numerous Chinese language gamers.

The UK competitors company in its resolution final week backed the argument and mentioned it didn’t see Amazon utilizing its market energy to drawback rival robotic vacuum cleaner makers.

It blocked Microsoft’s Activision deal whereas the Fee cleared the deal conditional on Microsoft’s licensing offers with rival streaming platforms.

Antitrust enforcers worldwide have turn into extra cautious of Huge Tech buying smaller rivals, involved in regards to the accumulation of troves of information by just a few firms, and large firms leveraging their dominance into newer markets.

© Thomson Reuters 2023