The UK’s antitrust regulator has given its approval to Amazon’s proposed acquisition of iRobot, the renowned robot vacuum maker. The deal, which was valued at $1.7 billion and announced by Amazon last August, had raised concerns among regulators and underwent thorough scrutiny. While the UK’s Competition and Markets Authority (CMA) has given the green light, the European Commission (EC) and the US Federal Trade Commission (FTC) are still reviewing the acquisition.
The CMA’s decision was based on the conclusion that the iRobot acquisition would not pose competition concerns within the UK. The regulator emphasized that iRobot holds a modest market share in the UK and faces several significant competitors. Furthermore, concerns that Amazon could leverage its online marketplace to disadvantage iRobot’s rivals were deemed unfounded, given the small size of the robot vacuum cleaner market in the UK.
Amazon is hopefully waiting for a similar decision from other regulators. The e-commerce giant said, “We look forward to similar decisions from other regulators soon.” The European Commission is expected to make a decision by July 6 whereas the FTC in the US is currently considering whether to launch an official investigation into the deal.
iRobot, founded over three decades ago at the Massachusetts Institute of Technology (MIT), is renowned for its Roomba-branded autonomous vacuum cleaners and has expanded into related products such as floor-mopping robots. The acquisition aligns with Amazon’s ambition to deepen its presence in the smart home market and strengthen its portfolio of home robotics offerings.
Consumer groups have expressed concerns regarding Amazon’s acquisition of iRobot, fearing that it could further consolidate the e-commerce giant’s dominance in the smart home market. The scrutiny from regulators reflects the growing apprehension over Big Tech’s acquisitions of smaller rivals, particularly those with access to substantial user data. Regulators in various countries and regions have been cautious in approving such deals and have often demanded remedies to ensure healthy competition.
