Amazon Deal for iRobot May Restrict Competition, European Commission Says -- Update
27 Novembro 2023 - 3:59PM
Dow Jones News
By Ben Glickman
The European Commission said Monday that Amazon's proposed deal
to buy Roomba-maker iRobot may limit competition in the robot
vacuum cleaner market.
European regulators said that they had informed Amazon of the
commission's preliminary view following an investigation of the
proposed acquisition.
The EC said that the deal may restrict competition in the making
of robot vacuum cleaners and could allow Amazon to fortify its
position as an online marketplace services provider.
The commission said Amazon may have the "ability and the
incentive" to foreclose iRobot's rivals by preventing them from
selling on Amazon's platform.
"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 said in
response to the release.
The spokesperson said iRobot faces "intense competition" in the
market for vacuum cleaner products and that the company believes it
can invest in iRobot while lowering prices for consumers.
The acquisition by Amazon, announced in August 2022, was cleared
by U.K. regulators in June, but faces an ongoing investigation by
the U.S. Federal Trade Commission.
The EC has until Feb. 14 to make a final decision on the
deal.
IRobot shares tumbled about 18%, to $34.02, following the news.
The stock has surged 36% over the last five trading days, after
Reuters reported last week that the deal was set to get
unconditional approval from European regulators.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 27, 2023 13:44 ET (18:44 GMT)
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