The European Commission has announced plans for an extensive investigation into Amazon’s proposed $1.7 billion acquisition of iRobot. The commission is concerned that the deal may limit competition in the market for robot vacuum cleaners. Additionally, it believes that the acquisition will strengthen Amazon’s position as an online marketplace provider. A final decision on the matter is expected by November 15.
In September, iRobot revealed that the U.S. Federal Trade Commission had formally requested documents from both companies to further understand the purpose and rationale behind the deal. Both iRobot and Amazon have agreed to cooperate with the FTC’s investigation.
It is worth noting that the FTC has the power to block the merger, require concessions such as divestitures, or simply take no action, allowing the deal to proceed as planned. The investigation process typically takes up to a year.
“We are actively collaborating with the relevant regulators during this merger review,” stated an Amazon spokesperson.
The acquisition of iRobot by Amazon was announced in August of last year.
No immediate comment was received from Amazon when contacted by Dow Jones.
Source: Wall Street Journal
