EU antitrust regulators are set to block Amazon’s $1.4 billion acquisition of robot vacuum maker iRobot (IRBT.O), citing concerns over potential competition restrictions in the robot vacuum cleaner market.
Despite a warning from the European Commission, Amazon has not offered remedies to address these concerns, leading to increased scrutiny of the deal by regulators.
The Commission, expected to make a decision on the matter by Feb. 14, expressed worries that Amazon could hinder iRobot rivals on its online marketplace, particularly in France, Germany, Italy, and Spain.
While the Digital Markets Act could address these concerns, the Commission believes that blocking the deal is a more prudent approach due to the lengthy enforcement process and the untested nature of the new legislation in court.
A veto could set a precedent for future Amazon acquisitions, requiring significant remedies for approval. iRobot shares fell by 30% in late trade. The Commission and Amazon declined to comment.
