2024-01-19 11:25:13
According to The Wall Street Journal (WSJ), citing unnamed knowledgeable sources, the European Commission’s antitrust department intends to block Amazon’s purchase of the American manufacturer of robotic vacuum cleaners iRobot. The two companies agreed to a deal worth $1.7 billion in August 2022. WSJ reports that yesterday, January 18, representatives of the EU Antitrust Commission met with representatives of Amazon and announced their intentions.
Back in November last year, the European Commission officially expressed its concern about the deal, which, in its opinion, could limit competition in the robot vacuum cleaner market, since Amazon has the ability to curb the sales of iRobot’s competitors on its marketplace while promoting iRobot’s sales.
By the end of last week, Amazon was supposed to submit to the European Commission its objections and an action plan that would guarantee the preservation of competition after the deal. However, according to the WSJ, Amazon was unable to submit its comments within the deadline. The European Commission must present its official conclusion on the deal by February 14. Representatives of the European Commission, as well as Amazon and iRobot, have not yet commented on the publications in the media.
After reports that the EU could block the deal, iRobot shares fell 40%.
The history of Amazon in the material “Amazon Beyond the Clouds.”
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