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Amazon abandons iRobot buyout after EU objections

January 29, 2024

Retail giant Amazon says it is scrapping its plans to buy the iRobot vaccum maker after the EU's antitrust authority raised competition concerns.

https://p.dw.com/p/4bnSx
Amazon signs and logos at the entrance to a logistics center in France
Amazon says it is scrapping its plans to buy the iRobot vaccum maker after the EU raised competition concerns.Image: DENIS CHARLET/AFP/Getty Images

Amazon has called off its proposed acquisition of iRobot, the manufacturer of the automatic Roomba vacuum cleaner, blaming "undue and disproportionate regulatory hurdles" imposed by the European Union (EU).

"We're disappointed that Amazon's acquisition of iRobot could not proceed," said Amazon General Counsel David Zapolsky. "We're believers in the future of consumer robotics in the home and have always been fans of iRobot's products."

Why did the deal fall through?

The deal has faced antitrust scrutiny on both sides of the Atlantic ever since the ecommerce giant announced that in 2022 that it was about to buy Massachusetts-based iRobot for $1.7 billion.

British monopolies regulators cleared the deal back in June 2023 but the European Commission, the EU's executive arm, informed Amazon last year of its "preliminary view" that the acquisition of the maker of the circular-shaped self-operating vacuums would be anticompetitive.

Its main concerns were that Amazon may hinder iRobot rivals on its online marketplace, especially in France, Germany, Italy, and Spain.

"Amazon is simultaneously an online marketplace and a retailer," explained Margrethe Vestager, the EU's competition commissioner.

"We are concerned that, by acquiring iRobot, Amazon could use this double role to prevent iRobot's competitors from accessing its marketplace."

Colin Angle, the founder of iRobot, also said the termination was "disappointing" iRobot shares fell at one point more than 14% in trading before the market opened.

mf/wmr (AP, AFP)