EU antitrust regulator intends to block Amazon's iRobot acquisition - WSJ
The European Union's competition watchdog plans to block Amazon's $1.4-billion acquisition of robot vacuum maker iRobot, citing concerns about reducing competition and reinforcing Amazon's dominance. Amazon did not offer remedies to address these concerns before the deadline. Shares of iRobot plunged 36% in response.
Jan 18 (Reuters) -
The European Union’s competition watchdog plans to block Amazon.com’s (AMZN.O) $1.4-billion deal for robot vacuum maker iRobot (IRBT.O) , The Wall Street Journal said on Thursday, citing people familiar with the matter.
Shares of the Roomba vacuum maker plunged 36% to $15 in trading after the bell.
Officials from the European Commission met Amazon’s representatives on Thursday to discuss the deal, the report said.
The U.S. tech giant did not offer remedies to the European Union antitrust regulator until the Jan. 10 deadline to address concerns the deal could reduce competition and reinforce Amazon’s e-commerce platform dominance.
WSJ reported that Amazon was informed during the meeting that the deal was likely to be rejected.
Amazon declined to comment on the report.
The e-commerce giant disclosed its plans to buy iRobot in August 2022, as it looks to add to its portfolio of smart devices, which include the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.
The European Commission, which serves as the EU’s competition watchdog, had until Feb. 14 to either approve or reject the deal.