Amazon's Planned $1.7 Billion iRobot Acquisition Faces In-Depth EU Probe -- Update

By Ian Walker

The European Commission said late Thursday that it plans an in-depth investigation into Amazon.com's proposed $1.7 billion acquisition of iRobot as it believes the deal could restrict competition in the market for robot vacuum cleaners.

The European Union's executive arm also said it believes the deal will strengthen Amazon's position as an online marketplace provider.

It now has until Nov. 15 to make a decision on the deal.

Responding, Amazon said that it continues to work with the EC through the process and is focused on addressing its questions and concerns.

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

Last month, the U.K. Competition and Markets Authority cleared the deal, saying that it wouldn't lead to competition concerns in the U.K.

In September, iRobot said the U.S. Federal Trade Commission had formally requested documents from both companies explaining the deal's purpose and rationale. A securities filing by iRobot said both companies would cooperate with the FTC's investigation.

After an investigation, which typically takes up to a year, the FTC can sue to block a merger, seek concessions such as divestitures or decline to take action, allowing a deal to close.

"We're working cooperatively with the relevant regulators in their review of the merger," an Amazon spokesperson said at the time.

Amazon announced its acquisition of iRobot last August.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

July 07, 2023 05:02 ET (09:02 GMT)

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