Major Acquisition Announced Amazon, worth $1.7 billion, is subject to antitrust scrutiny by European Union (EU) regulators. purchase I am a robotrobot vacuum cleaner manufacturer, expressed concern about declining competition and the possible strengthening of Amazon’s dominance as the leading provider of the online marketplace..

The European Commission has launched a full investigation and will decide whether to approve or block the deal by November 15. In the meantime, Amazon is committed to working closely with the Commission, answering its questions and resolving any issues identified at this stage.

The EU move is part of a growing global focus on big tech companies acquiring smaller competitors. Competition authorities are increasingly concerned that a handful of companies are collecting data and using their dominance to expand their influence into new markets.

Amazon’s acquisition of iRobot, announced last August, will add Roomba robot vacuums to the company’s already diverse portfolio of smart devices. Amazon currently offers a wide range of products, from the Alexa voice assistant to security devices, smart thermostats, and smart wall displays.

iRobot is a company known for its expertise in the development of robotic vacuum cleaners, having released its first Roomba model in 2002. However, Amazon claims that the vacuum cleaner market is highly competitive and has a significant number of Chinese players.

The main concern of the European Commission is that this acquisition will allow Amazon to limit competition in the robot vacuum market, further strengthening its position as a leader in the online market. The Commission stressed that it worked closely with other competition authorities during the initial investigation and will continue to cooperate during the in-depth investigation.

Amazon defends itself against allegations

An Amazon spokesperson noted that the company is committed to providing iRobot with the resources to accelerate innovation, invest in core features, and at the same time lower prices for consumers. The e-commerce giant emphasizes that this acquisition will benefit both parties by spurring innovation and access to products at more affordable prices.

This decision by the European Commission comes after the UK antitrust agency approved the deal without any conditions after a preliminary review. However, Amazon shares fell slightly 1.3% on Wall Street, below the performance of the Dow Jones, which fell 1.1%.

As the EU antitrust investigation continues, Amazon’s final decision to acquire iRobot will have a significant impact on online market conditions and competition in the robot vacuum industry. The results of the investigation are eagerly awaited by both Amazon and regulators and rival companies.

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Source: CNNBC.

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