A Roomba model robot vacuum is on display at iRobot headquarters in Bedford, Mass.
Scott Els | Bloomberg | Getty Images
European Commission thursday said And said it has launched a comprehensive and “in-depth” investigation amazonPlans to buy Roomba maker for $1.7 billion i am a robot.
The European Union’s executive body expressed concern that the deal could limit competition in the robot vacuum cleaner market and would further strengthen Amazon’s position as an online marketplace provider.
Like U.S. antitrust agencies, the committee has the authority to block proposed acquisitions. Shares of iRobot were little changed following the news.
The committee’s concern is that Amazon will be able to engineer search results in iRobot’s favor, putting rivals like Shark and Dyson at a disadvantage in marketing to Amazon’s millions of users.
Concerns have also been raised about Amazon’s use of iRobot user data, which the committee said could provide the company with a “significant advantage” over rivals and “raise barriers to entry and expansion” for current or future rivals.
“The Commission will now conduct an in-depth investigation into the implications of the proposed transaction to determine whether its initial competition concerns are substantiated,” the statement said.
Amazon announced the iRobot deal last year as part of an effort to expand its presence in the smart home space. Britain’s antitrust watchdog, the Competition and Markets Authority, approved the deal in June. The deal is still under review by the U.S. Federal Trade Commission, which has repeatedly requested information from iRobot about the deal, according to regulatory filings.
Federal Trade Commission Chair Lena Khan written A paper on possible anticompetitive behavior by Amazon while at Yale Law School was widely cited, and Amazon has sought to recusal Khan from any FTC investigation of the e-commerce company.
An Amazon spokesperson told CNBC in a statement: “We will continue to work with the European Commission through the process, with a focus on addressing issues at this stage and any concerns identified.”
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