EU regulators warned that Amazon’s purchase of iRobot, valued at $1.4 billion, might lead to the exclusion of competing robot cleaners from its online platform. This acquisition, announced by Amazon last August, occurred amidst growing scrutiny over tech giants acquiring smaller companies and amassing data that could strengthen their market dominance or aid expansion into new sectors.
According to the European Commission, Amazon could potentially impede iRobot’s rivals by employing various strategies aimed at blocking them from selling robot vacuum cleaners (RVCs) on Amazon’s online marketplace or reducing their access to it.
The Commission emphasized the significance of Amazon’s marketplace as a crucial avenue for RVC sales in France, Germany, Italy, and Spain. In response, they issued a statement outlining their concerns to Amazon, a move that typically prompts companies to offer solutions. However, it also provides an opportunity for firms to directly address specific issues and potentially secure unconditional approval.
Amazon responded by stating its collaboration with the Commission to tackle these concerns. They defended the acquisition, citing iRobot’s innovative products in a highly competitive vacuum cleaner market. Amazon believed their resources could accelerate iRobot’s innovation, enable investment in essential features, and potentially lower prices for consumers.
