Amazon’s takeover of the vacuum cleaner brand, iRobot, is set to be blocked by the European Union’s competition watchdog.
According to reports by the BBC, The Competition and Markets Authority (CMA) previously contested the acquisition in the UK, saying that iRobot’s place in the UK market was “modest” and that it already faced several significant rivals.
However, it’s a major U-turn for Amazon, after the UK Government’s competition watchdog gave the merger the green light last Summer, concluding that the deal would not lead to competition concerns.
But now, it’s been reported that regulators are worried that iRobot’s tie-up with Amazon could make it difficult for other vacuum cleaner manufacturers to compete, especially if Amazon was to favour the robot vac brand on its e-commerce site.
“If the objective is to have more competition in the home robotics sector, this makes no sense,” Matt Schruers, President of tech lobbying group, Computer and Communications Industry Association, told Reuters.
“Blocking this deal may well leave consumers with fewer options, and regulators cannot sweep that fact under the rug.”
Amazon originally moved to buy iRobot, creator of the Roomba cleaner, in August 2022 in a deal worth £1.4 billion. It said it was looking to expand its footprint in the market for smart home appliances.
Roomba models sell in the UK from £249, with some costing up to £899.
