UK Approves Amazon’s Acquisition of iRobot, Maker of Roomba, in a $1.7 Billion Deal

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On Friday, British antitrust regulators granted approval to Amazon’s acquisition of iRobot, the manufacturer of robot vacuums, in a deal worth $1.7 billion. However, the transaction still awaits scrutiny in the United States and Europe.

The Competition and Markets Authority, after conducting an initial investigation, decided not to escalate the matter as it determined that the deal would not lead to a significant reduction in competition within the United Kingdom.

Amazon expressed satisfaction with the outcome, stating, “We anticipate receiving similar decisions from other regulatory bodies in the near future.”

Consumer groups have expressed concerns that Amazon’s purchase of iRobot, based in Bedford, Massachusetts, and renowned for its popular Roomba robotic vacuum cleaners, would further strengthen the e-commerce giant’s dominance in the smart home market.

The acquisition is currently under review by the Federal Trade Commission in the United States, due to concerns about Amazon’s expanding market power. Additionally, the European Union’s executive branch initiated a review of the deal earlier this month.

In its decision, the UK watchdog emphasized that robot vacuum cleaners and the data they collect are not generally regarded as crucial entry points into the emerging smart home devices market.

The regulator further noted that iRobot holds a modest market position in the UK and already faces competition from “several significant rivals.” Consequently, Amazon would have limited incentive to provide preferential treatment to its own products over competitors’ offerings on its online store.

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More about Amazon-iRobot acquisition

• Amazon
• iRobot
• Competition and Markets Authority
• Federal Trade Commission
• European Union