Amazon’s $1.65 Billion Bid to Buy iRobot Gets In-Depth EU Probe

Samuel Stolton, Bloomberg News

The iRobot headquarters in Bedford, Massachusetts, US, on Friday, June 16, 2023. Amazon.com Inc.'s proposed $1.7 billion deal to buy robot vacuum firm iRobot Corp. was given the all-clear by the UKs antitrust agency. Photographer: Sophie Park/Bloomberg , Bloomberg

(Bloomberg) -- Amazon.com Inc.’s $1.65 billion bid to buy vacuum cleaner maker iRobot Corp. faces an in-depth European Union investigation amid concerns the takeover could thwart competitors by giving the ecommerce giant access to a new stash of user data.

The European Commission, the EU’s merger watchdog, set a deadline of Nov. 15 to vet the potential impact of deal, which has sparked a backlash from privacy activists.

Aside from thwarting rival robot vacuum cleaners, Amazon’s access to iRobot’s data may make “it more difficult for rival marketplace providers to match Amazon’s online marketplace services,” the commission said. “Thus, the transaction may raise barriers to entry and expansion for Amazon’s competitors to the detriment of consumers.”

The decision puts the commission at odds with Britain’s Competition and Markets Authority, which has given the deal the green light after concluding that iRobot has a relatively modest market power.

Amazon said in a statement that it will work with regulators to address questions and concerns raised.

“We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers,” it said.

So-called phase 2 probes add about 90 working days to deal reviews. Regulators typically demand remedies to solve competition concerns but sometimes also decide to give their unconditional approval if initial concerns are shown to be unfounded.

(Updates with Amazon comment in fifth paragraph.)