The European Commission has expressed concern over Amazon’s acquisition of iRobot, fearing that the deal could limit competition in the robot vacuum cleaner market and strengthen Amazon’s position as a dominant service provider in online markets. The EU regulator is currently investigating whether Amazon’s access to iRobot users’ data will give the company an advantage in the online services market, including advertising, and other related markets.
Amazon spokeswoman Alexandra Miller defended the acquisition, highlighting the potential benefits it could bring. “iRobot, facing stiff competition from other vacuum cleaner suppliers, offers practical and innovative products. We believe Amazon can provide the necessary resources to accelerate innovation, invest in critical features, and lower prices for consumers,” Miller said.
The European Commission has until Nov. 15 to decide whether to block the agreement. Amazon first announced its intention to acquire iRobot last August. If the deal goes through, iRobot’s Roomba products will join Amazon’s line of smart home devices, which already includes popular brands such as Ring, Blink and Eero. Amazon has also developed the Alexa voice assistant, which serves as the control center for the smart home ecosystem.
Dave Limp, Amazon’s senior vice president of devices and services, expressed his enthusiasm for the acquisition. “We are excited to partner with the iRobot team to develop capabilities that will make customers’ lives easier and more enjoyable,” said Limp.
While the UK’s Competition and Markets Authority has already approved Amazon’s acquisition of iRobot, the deal is also under review by the US Federal Trade Commission. The Wall Street Journal reported last year that the regulator had requested documents from both companies to gather information about the deal. In addition, a group of Democratic lawmakers called on the FTC to launch a formal investigation. However, according to the Financial Times, the investigation is expected to center on competition concerns rather than privacy issues.
As the European Commission delves deeper into the investigation, the findings will have significant implications for both Amazon and the robot vacuum cleaner market. The decision will determine the nature of competition in the industry and the extent of Amazon’s influence in the smart home ecosystem.
