Shares of Roomba maker iRobot fell nearly 20% after the European Commission said Amazon’s proposed $1.7 billion acquisition of the company “may restrict competition in the market for robot vacuum cleaners.”
Regulators said Amazon may impede rivals from selling robot vacuum cleaners on its marketplace or limit access.
The commission opened an investigation in July and plans to make a final decision in February.
Amazon said it is working with EU regulators to address their concerns.
“iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products,” an Amazon spokesperson said in a statement. “We believe Amazon can offer a company appreciate iRobot the resources to speed up innovation and invest in critical features while lowering prices for consumers.”
Amazon agreed to acquire iRobot in August 2022, part of a broader push by the Seattle-based tech giant to enlarge its footprint in consumer robotics. The deal is also under scrutiny by the U.S. Federal Trade Commission.
Amazon and iRobot in July agreed to a 15% reduction in Amazon’s acquisition price to offset a new $200 million loan necessary to fund the Roomba robotic vacuum-cleaner maker’s ongoing operations.
iRobot shares spiked Friday following a report from Reuters that indicated EU regulators were set to approve Amazon’s acquisition.
