Amazon announced on Monday that it was abandoning its ambitions to acquire the iRobot vacuum producer after the EU’s antitrust watchdog objected to the deal over competition concerns.
“We’re disappointed that Amazon’s acquisition of iRobot could not be completed,” stated David Zapolsky, Amazon SVP and General Counsel. In July, the EU launched an antitrust probe into Amazon’s $1.7 billion acquisition of iRobot, well known for its Roomba self-operating vacuum cleaners.
At the time, Brussels was investigating whether the acquisition would enable Amazon to “restrict competition” and “strengthen its position as an online marketplace provider.”
The EU expressed worry that Amazon’s position as the world’s leading internet retail center would enable it to stifle competition from rival vacuum manufacturers seeking online buyers.
The European Commission also expressed concerns about how Amazon will handle the data obtained by iRobot’s self-driving gadgets, which upload precise information about the user’s personal house.
The EU’s deadline to decide on the pact was next month, and media sources broadly indicated that the commission would exercise its veto. Given the commission’s objections and the lack of appropriate alternatives to alleviate their worries, Amazon executives concluded the acquisition had no future.
Amazon irobot vacuum
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” Zapolsky, the chief executive of Amazon, said.
Amazon also stated that it believes “undue and disproportionate regulatory hurdles” discourage entrepreneurs and harm competition in the long term. In a statement, the firms said Amazon would pay iRobot a previously agreed-upon termination fee.
Source: guardian.ng
