EU Formally Objects to Amazon Acquisition of iRobot

The European Union’s European Commission today filed a formal statement of objections related to Amazon’s iRobot acquisition. The concern is that the deal will restrict the market for automated (“robot”) vacuum cleaners.

“The Commission is concerned that Amazon may restrict competition in the European Economic Area (EEA)-wide and/or national markets for robot vacuum cleaners (RVCs) by hampering rival RVC suppliers’ ability to effectively compete,” an EC statement explains. “In particular, the Commission found that Amazon may have the ability and the incentive to foreclose iRobot’s rivals by engaging in several foreclosing strategies aimed at preventing rivals from selling RVCs on Amazon’s online marketplace and/or at degrading their access to it. [Additionally,] Amazon may have the incentive to foreclose iRobot’s rivals because it may be economically profitable to do so [and] such foreclosure strategies could restrict competition in the market for RVCs, leading to higher prices, lower quality, and less innovation for consumers.”

Amazon announced that it would acquire iRobot in August 2022 for $1.7 billion, but the EC didn’t launch an “in-depth” investigation of the deal until this past July. Today’s statement of objections mirrors its initial concerns, but Amazon can now formally respond to those concerns and attempt to address them. It says that it will continue to work with the Commission so that it can successfully conclude the transaction.

“iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products,” an Amazon spokesperson said. “We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers.”

The UK Competition and Markets Authority approved the acquisition this past June, but the U.S. Federal Trade Commission (FTC) has yet to weigh in.