The European Union’s antitrust regulator has raised formal objections to Amazon’s proposed $1.45 billion acquisition of iRobot, citing concerns that the deal could potentially empower the tech giant to misuse its online marketplace dominance to disadvantage competitors of the robot vacuum cleaner maker. The objection, issued by the European Commission on Monday, follows an extensive investigation initiated after the announcement of the acquisition in August of the previous year. Although not a definitive rejection of the deal, this procedural step signals regulatory reservations. Amazon has the opportunity to engage with the EU regulator to address the concerns raised, with a final decision expected by February 2024. Amazon has yet to provide a response to the EU’s statement.
In response to this development, iRobot shares experienced a notable decline of more than 20 percent. It’s worth noting that the reported value of the iRobot deal was revised to approximately $1.45 billion from its initial valuation of $1.7 billion. As both Amazon and iRobot navigate the regulatory landscape, the EU’s antitrust warning adds a layer of complexity to the acquisition, underlining the scrutiny tech giants face as they pursue strategic moves that could impact competition within the market.