{"id":1499,"date":"2024-01-19T18:19:16","date_gmt":"2024-01-19T18:19:16","guid":{"rendered":"https:\/\/260web.com\/news\/amazon-takeover-of-irobot-to-be-blocked-by-eu\/"},"modified":"2024-01-19T18:19:16","modified_gmt":"2024-01-19T18:19:16","slug":"amazon-takeover-of-irobot-to-be-blocked-by-eu","status":"publish","type":"post","link":"https:\/\/260web.com\/news\/amazon-takeover-of-irobot-to-be-blocked-by-eu\/","title":{"rendered":"Amazon takeover of iRobot to be blocked by EU"},"content":{"rendered":"

Amazon takeover of iRobot to be blocked by EU<\/p>\n

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\"iRobot<\/picture><\/span>Getty Images<\/span><\/div>\n<\/figure>\n<\/div>\n
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By Shiona McCallum<\/div>\n
Technology reporter<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Amazon’s takeover of vacuum cleaner maker iRobot is set to be blocked by the European Union’s competition watchdog, the BBC understands. <\/b><\/p>\n<\/div>\n<\/div>\n

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It’s a blow to the tech giant, which was previously given the all-clear for the purchase by the UK government’s competition watchdog. <\/p>\n<\/div>\n<\/div>\n

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The Competition and Markets Authority (CMA) found that its place in the UK market was “modest” and that it already faced several significant rivals.<\/p>\n<\/div>\n<\/div>\n

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Amazon declined to comment. <\/p>\n<\/div>\n<\/div>\n

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The online giant moved to buy iRobot, maker of the Roomba cleaner, in August 2022 in a takeover deal set to cost $1.7bn (\u00a31.4bn).<\/p>\n<\/div>\n<\/div>\n

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It was looking to expand its footprint in the market for smart home appliances.<\/p>\n<\/div>\n<\/div>\n

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But regulators are worried that iRobot’s tie-up with Amazon could make it difficult for other vacuum-makers to compete, especially if Amazon were to give the Roomba benefits over rivals on its e-commerce site. <\/p>\n<\/div>\n<\/div>\n

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The European Commission (EC), which serves as the EU’s competition watchdog, opened an investigation into the purchase last July. <\/p>\n<\/div>\n<\/div>\n

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The EC has the legal deadline of February 14 to make its decision but the commission’s 27 top political leaders will need to reach consensus on the rejection before a final decision can be issued.<\/p>\n<\/div>\n<\/div>\n

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iRobot shares tanked 40% in after hours trading after the first reporting of the EU’s intentions by the Wall Street Journal.<\/p>\n<\/div>\n<\/div>\n

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The takeover by Amazon had been seen as a boon for the firm, as it has struggled with sales declines. <\/p>\n<\/div>\n<\/div>\n

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“If the objective is to have more competition in the home robotics sector, this makes no sense,” said Matt Schruers, president of tech lobbying group Computer and Communications Industry Association.<\/p>\n<\/div>\n<\/div>\n

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“Blocking this deal may well leave consumers with fewer options, and regulators cannot sweep that fact under the rug,” Schruers told Reuters.<\/p>\n<\/div>\n<\/div>\n

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Roomba models sell in the region of \u00a31648 in the UK.<\/p>\n<\/div>\n<\/div>\n

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Related Topics<\/h2>\n<\/div>\n
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