2024-01-29 18:21:53
Amazon decides not to take over vacuum cleaner manufacturer iRobot
The EU competition watchdogs feared that Amazon would use its dual role through the takeover to deny competitors access to its marketplace.
Also available in Switzerland: vacuum and mopping robots from iRobot.
Foto: Getty Images via AFP
The online retailer Amazon has withdrawn its planned takeover of the vacuum robot manufacturer iRobot due to concerns from EU competition authorities. “We are disappointed that Amazon cannot finalize the takeover of iRobot,” the US company said on Monday. Amazon therefore found itself unable to dispel the objections that the EU Commission had expressed with regard to the plans.
Amazon criticized the EU authorities. It creates “inappropriate and disproportionate regulatory hurdles” that would ultimately harm companies and competition. “This outcome will deprive consumers of faster innovation and more competitive prices, which would certainly have made their lives easier and more enjoyable.”
The EU Commission announced an investigation into the takeover plans in July. The competition watchdogs cited in particular Amazon’s dual role as a provider of a sales platform and at the same time a manufacturer of goods. “We fear that by taking over iRobot, Amazon will use this dual role to deny iRobot’s competitors access to its marketplace,” explained the authority’s vice president for competition, Margrethe Vestager.
The US company iRobot produces the Roomba brand vacuum robots and sells them via Amazon, among others. The online retailer declared its intention to purchase the company in August 2022. He wants to advance his development in the field of artificial intelligence. The British competition watchdog had no objections to this.
Against the background of the withdrawn purchase offer, the association of large online companies CCIA criticized the EU Commission. “Europe cannot and should not create an environment in which companies are not allowed to invest in or acquire companies in related sectors,” said CCIA Europe boss Daniel Friedlaender. “This sends the wrong signal to both global investors and EU start-ups: once you reach a certain size, you can forget about future mergers and acquisitions.”
“The end of the acquisition agreement is disappointing, but iRobot is now looking to the future,” said company founder Colin Angle. His company will continue to work on developing intelligent robots “that make life better.”
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