Amazon convinced the CMA but the EU is still unsure about the $1.7 billion iRobo...

Amazon convinced the CMA but the EU is still unsure about the $1.7 billion iRobot deal

Just a week after getting the green light from the UK antitrust regulator, the Competition and Markets Authority (CMA), Amazon is now facing suspicion from the European Commission, the European Union competition watchdog.

On the other hand, the EU allowed the acquisition of Activision Blizzard by Microsoft on the condition that Microsoft would license deals with other rival streaming platforms too, even though the CMA disallowed it.

Yesterday, Amazon also entered a conflict with the Federal Trade Commission, where the commission filed a lawsuit against the company for allegedly subscribing people to its services without consent.

Today, a report by Reuters suggests that the Amazon acquisition of iRobot Corporation is under investigation by the EU. The acquisition was first announced in August last year, yet the deal is still fostering the concern of antitrust investigators in the UK.

Hence, Amazon will face a full-scale four-month investigation by the European Commission. According to people familiar with the matter, the analysis will begin after the preliminary review of the deal on July 6, 2023.

One of the insiders noted that it is unlikely Amazon will offer remedies in the initial stages of the legal matter. In the next few days, however, Amazon will have a final chance to convince the antitrust investigator that the acquisition will not prove detrimental to the competition in the robot vacuum cleaner industry.

Previously, the CMA had similar concerns as the EU, as it claimed the acquisition would threaten rivals in the industry. It believed that Amazon’s large online marketplace would give the company an unfair advantage over competitors, and that rivals in the smart home industry would be affected by the deal as well.

Amazon, however, had previously mentioned that the robot vacuum cleaner industry receives intense competition from Chinese manufacturers. This was also backed by the CMA, but as of now, the EU remains unsure.

Additionally, neither the EU nor the retail giant has commented on the current situation.

Source: Reuters