The European Commission announced on Thursday that it has launched a thorough investigation into Amazon’s proposed acquisition of iRobot for $1.7 billion. This investigation aims to determine whether the transaction will harm competition in the robot vacuum cleaner market and further solidify Amazon’s position as an online marketplace provider.
One of the concerns raised by the Commission is that Amazon could manipulate search results in favor of iRobot, placing competitors like Shark and Dyson at a disadvantage when marketing to Amazon’s vast user base. Additionally, the Commission is worried about Amazon’s utilization of iRobot user data, as this could give the company a significant advantage over rivals and create barriers for current and future competitors.
“The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed,” stated the European Commission.
While the deal was approved by Britain’s antitrust watchdog, the Competition and Markets Authority, in June, it is still under review by the U.S. Federal Trade Commission, which has requested information from iRobot multiple times. The FTC’s new chair, Lina Khan, is known for her research on Amazon’s potential anticompetitive behavior and has faced requests for recusal from Amazon in FTC investigations into the company.
An Amazon spokesperson stated, “We continue to work through the process with the European Commission and are focused on addressing its questions and any identified concerns at this stage.”
It is important to note that shares of iRobot remained largely unaffected by this news.
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