Amazon and robot vacuum manufacturer iRobot have decided to scrap their proposed merger, citing insurmountable opposition from EU antitrust regulators. The $1.4 billion acquisition plan faced a roadblock as the European Commission antitrust regulators expressed concerns and signaled their intent to block the deal. According to reports, the primary worries were related to the possibility of Amazon stifling competition for iRobot rivals, particularly in online marketplaces of France, Germany, Italy, and Spain.
The deal, announced by Amazon in August 2022, aimed to bolster the world’s largest online retailer’s collection of smart home devices, complementing its existing products like Alexa and Ring. Amazon also had aspirations of expanding into the virtual healthcare sector.
However, facing resistance from critics who argued that the merger would further enhance Amazon’s dominant position in the smart home devices market, the companies decided to abandon their plans. Amazon acknowledged that the proposed acquisition had no viable path to regulatory approval in the European Union.