Amazon’s acquisition of iRobot, the robot vacuum cleaner maker, is set to undergo a comprehensive antitrust investigation by the European Union. This comes after Amazon received approval for the deal in the UK. The acquisition, valued at $1.7 billion, was announced by Amazon in August 2022 as part of its strategy to expand its range of smart devices, including the popular Alexa voice assistant and other smart home products. iRobot, known for its Roomba robot vacuum, has been in the market since 2002.
As news of the EU investigation broke, iRobot shares took a hit, dropping approximately 10%. Similarly, Amazon shares experienced a slight decline. The European Commission is expected to launch a four-month investigation following its preliminary review of the deal on July 6. During this initial phase, Amazon is unlikely to propose any remedies. However, they will have an opportunity in the coming days to persuade the EU competition watchdog that the acquisition is pro-competitive, although the odds may be against them. Both Amazon and the Commission declined to comment on the matter. Amazon previously stated that the vacuum cleaner market is highly competitive, with many Chinese players involved.
In contrast, the UK competition agency recently approved the deal, stating that it did not see Amazon leveraging its market power to disadvantage rival robot vacuum cleaner manufacturers. It’s worth noting that while Microsoft’s Activision deal was blocked by antitrust enforcers, the European Commission cleared the deal with certain conditions, requiring Microsoft to make licensing agreements with rival streaming platforms.
The global landscape of antitrust enforcement has become more cautious when it comes to Big Tech acquiring smaller competitors. Regulators are concerned about the consolidation of vast amounts of data by a few dominant companies and the potential exploitation of market dominance in new sectors.
In other tech news, Apple unveiled its first mixed reality headset, the Apple Vision Pro, at its annual developer conference. The company also introduced new Mac models and upcoming software updates. These announcements, along with other important updates, were discussed on the Gadgets 360 podcast, Orbital. The podcast is available on various platforms, such as Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, and Amazon Music.
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