Amazon's $1.7 billion acquisition of robot vacuum cleaner
maker iRobot may reduce competition and strengthen Amazon's position as online
marketplace provider, EU antitrust regulators warned on Thursday.
The European Commission opened a full-scale investigation
and will decide by November 15 whether to clear or block the deal.
"We continue to work through the process with the
European Commission and are focused on addressing its questions and any identified
concerns at this stage," an Amazon spokesperson told Reuters.
Antitrust enforcers around the world have stepped up
scrutiny of Big Tech acquiring smaller rivals, concerned about the accumulation
of troves of data by a few companies, and big players leveraging their
dominance into new markets.
The acquisition announced in August last year would add
iRobot's Roomba robot vacuum to Amazon's portfolio of smart devices, which
include the Alexa voice assistant, smart thermostats, security devices and
wall-mounted smart displays.
IRobot made its first Roomba robot vacuum in 2002. Amazon
has previously said the vacuum cleaner market is very competitive, with lots of
Chinese players.
"The Commission is concerned that the transaction would
allow Amazon to restrict competition in the market for robot vacuum cleaners
and to strengthen its position as online marketplace provider, " the EU
executive said.
"The Commission closely cooperated with other
competition authorities during the initial investigation and will continue such
cooperation during the in-depth investigation (...) the opening of an in-depth
inquiry does not prejudge the outcome of the investigation".
The Amazon spokesperson also said the company could
"offer a company like iRobot the resources to accelerate innovation and
invest in critical features while lowering prices for consumers."
The EU competition enforcer's decision confirmed a Reuters
story last month and came a month after the UK antitrust agency cleared the
deal unconditionally after a preliminary review.
At around 1800 GMT, Amazon shares were down 1.3% on Wall
Street, underperforming the Dow Jones (-1.1%).
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