Amazon’s iRobot Deal Faces EU Veto, No Concessions Offered

In a recent update on the European Commission website, it has been revealed that Amazon has not provided any remedies to alleviate concerns raised by EU antitrust regulators regarding its $1.4 billion acquisition of iRobot, a prominent robot vacuum maker.

The European Commission’s competition officials issued a warning to Amazon in November, highlighting potential competition restrictions in the robot vacuum cleaners market. The company had until Wednesday to respond and offer solutions to address these concerns.

Initially, Amazon seemed poised to secure unconditional EU clearance for the acquisition, with the Commission’s lawyers reportedly disagreeing with the warning issued in November. However, the situation took a turn when the lawyers withdrew their objections to the statement of objections, signaling a shift in the Commission’s stance.

Read more: EU Sends Amazon’s $1.65 Billion Bid To Buy iRobot For In-Depth Probe

The absence of proposed remedies from Amazon now leaves two possible outcomes on the table. It could result in the deal receiving unconditional EU antitrust approval, suggesting that the Commission is satisfied with Amazon’s arguments or concessions. On the other hand, the lack of remedies might also pave the way for an EU veto of the acquisition, a move that would reflect the Commission’s persistence in addressing potential anti-competitive implications in the market for robot vacuum cleaners.

As stakeholders await further developments, the fate of Amazon’s iRobot acquisition remains uncertain, with the EU regulators closely monitoring the situation.

Source: Reuters