Amazon Not Offering Concessions To EU For IRobot Deal Approval

(RTTNews) - e-commerce behemoth Amazon.com, Inc. (AMZN) has not offered concessions to the European Commission in its bid to garner approval for its proposed $1.7 billion takeover of Roomba robot vacuum cleaner maker iRobot Corp. (IRBT), according media reports on Thursday.

Amazon had until the end of Wednesday to offer resolution to the European Commission's objections on the deal. According to the Commission, Amazon may restrict competition in the European Economic Area or EEA-wide and/or national markets for robot vacuum cleaners or RVCs, by hampering rival RVC suppliers' ability to effectively compete.

The regulator said in November that Amazon could make more profit by selling more iRobot models than rivals on its marketplace. The ultimate result could lead to "higher prices, lower quality and less innovation for customers," it added.

Amazon provides an online marketplace, which allows retailers to advertise and sell products including robot vacuum cleaners or RVCs. iRobot, which manufactures RVCs, sells them also through Amazon's online marketplace.

The European competition regulator now has until February 14 to take a final decision to clear the deal unconditionally or veto it.

The European Commission opened an in-depth investigation on July 6, 2023 to assess if Amazon's acquisition of iRobot may restrict competition in the market for the manufacturing and supply of RVCs, as well as allow Amazon to strengthen its position in the market for online marketplace services to third-party sellers.

Following the companies' deal, the U.S. Federal Trade Commission in late September had requested them for more information after more than two dozen groups reportedly wrote to the FTC alleging the deal could help Amazon "entrench their monopoly power in the digital economy."

The UK's Competition and Markets Authority or CMA also had launched a probe into the proposed acquisition of iRobot by Amazon. However, the British antitrust regulator unconditionally cleared the proposed deal in mid-June last year, noting that it would not lead to competition concerns in the UK.

In August 2022, Amazon agreed to acquire iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot's net debt. The company, which introduced its first Roomba robot vacuum in 2002, now has sold millions of robots worldwide.