The giant e-commerce platform Amazon announced on Monday its decision to abandon the purchase of iRobot, the company that markets robotic vacuum cleaners, such as the Roomba. This decision was made due to Amazon’s inability to secure approval from the European Commission, which expressed concerns about the deal’s impact on competition, as reported by the French news agency.
David Zapolsky, one of the senior executives at Amazon, expressed disappointment in a statement, saying, “We regret that Amazon cannot complete the acquisition of iRobot.” He added that “mergers and acquisitions of this nature help companies like iRobot better position themselves in the global market.”
iRobot’s founder, Colin Angle, mentioned in the same statement, “The end of the acquisition agreement is disappointing, but iRobot is now looking forward to the future and aims to develop smart robots and innovations that make life better.”
The markets reacted significantly to this announcement, with iRobot’s stock dropping by 15.27% to $14.46 at the opening of the New York Stock Exchange. However, the impact was limited for Amazon, with its stock remaining relatively stable (+0.01%) at $159.13.
In early July, the European Commission announced an investigation to determine whether the acquisition would allow Amazon to “restrict competition” and “strengthen its position as an online market provider.” At that time, Commissioner for Competition Margrethe Vestager expressed concerns that “Amazon is both an electronic marketplace and a retail company simultaneously. We are worried that by acquiring iRobot, Amazon will use this dual role to prevent iRobot’s competitors from accessing its market.”
iRobot manufactures robotic vacuum cleaners and sells them on Amazon’s online marketplace. The purchase of the independent robotic vacuum company Roomba, announced in August 2022, aimed to expand the scope of artificial intelligence and the group’s ambitions in the smart home accessories sector.
The European Union’s announcement followed the approval of the acquisition by the UK’s Competition and Markets Authority in June 2023.
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