Internet: EU Commission has concerns about Amazon’s takeover of iRobot

2023-07-06 20:21:42

Internet EU Commission has concerns about Amazon’s takeover of iRobot

Amazon wants to take over the vacuum cleaner pioneer iRobot. However, the EU Commission is concerned about competition. photo

© Patrick Pleul/dpa-Zentralbild/dpa

Amazon has been wanting to take over the vacuum cleaner pioneer iRobot for a year – and thus expand its own role in the networked home. But there are competition concerns in the EU Commission.

The EU Commission is examining the multi-billion takeover of the company known for robot vacuum cleaners iRobot by Amazon. “The Commission fears that the takeover will put Amazon in a position to restrict competition in the market for vacuum robots,” said the competition watchdog on Thursday evening. Amazon wants to expand its role in the connected home with the purchase. When the project became known almost a year ago, iRobot was valued at around 1.7 billion dollars (currently 1.56 billion euros), including outstanding debt.

iRobot is best known for its self-propelled Roomba vacuum cleaner. Newer models use cameras to create a 3D scan of the household and, thanks to artificial intelligence, avoid cables or dog droppings lying on the floor, for example. Angle also promised household robots with gripper arms for the future. iRobot was a pioneer in robotic vacuum cleaners, and many vendors now offer such devices.

One of the reasons given by the Commission for the preliminary concerns was that Amazon could be able and have the incentive to foreclose iRobot’s competitors from the market by preventing them from selling robot vacuums on Amazon’s online marketplace . In addition, the large company could, for example, exclude competitors from the market by preventing them from using the “Works with Alexa” certification or making access more difficult. Certification ensures that a device is compatible with the voice assistant Alexa.

Amazon said it is continuing to work with the European Commission and is focused on answering the questions and concerns. iRobot is in intense competition with other vacuum cleaner manufacturers. The Commission stresses that its concerns are preliminary. It will now examine the effects of the transaction in detail to determine whether its competition concerns are confirmed, the authority said. If the concerns are confirmed, the Commission could, for example, issue conditions for the takeover.

dpa