European Commission sends Amazon statement of objections over iRobot deal

The European Commission has informed Amazon (AMZN) of its preliminary view that its proposed acquisition of iRobot (IRBT) may restrict competition in the market for robot vacuum cleaners, or “RVCs.” The Commission stated: “Amazon provides an online marketplace, which allows retailers to advertise and sell products (including RVCs) to customers. Amazon is active as a retailer of various products (including RVCs) on its online marketplace. iRobot manufactures RVCs and sells them also through Amazon’s online marketplace. On 6 July 2023, the Commission opened an in-depth investigation to assess if Amazon’s acquisition of iRobot may (i) restrict competition in the market for the manufacturing and supply of RVCs; and (ii) allow Amazon to strengthen its position in the market for online marketplace services to third-party sellers (and related advertising services) and/or other data-related markets. As a result of this in-depth investigation, the Commission is concerned that Amazon may restrict competition in the European Economic Area (‘EEA’)-wide and/or national markets for RVCs, by hampering rival RVC suppliers’ ability to effectively compete… The Commission has conducted a wide-ranging investigation to understand the market and the potential impact of the deal. This investigation has included, among others, analysing internal documents provided by the parties and gathering views from market participants such as suppliers of RVCs and other smart home devices, as well as from providers of online sales channels. The Commission closely cooperated with other competition authorities during both the initial investigation and the in-depth investigation and will continue such cooperation during the remainder of the in-depth investigation… The proposed transaction was notified to the Commission on 1 June 2023. The Commission opened an in-depth investigation on 6 July 2023 and now has until 14 February 2024 to take a final decision.”