Jan 29, 2024 at 3:57 PM Update: an hour ago
Online shopping giant Amazon has decided not to take over robot vacuum cleaner maker iRobot. Brussels refuses to approve the takeover for fear of unfair competition in the robot vacuum cleaner market.
Brussels had already whispered to Amazon last week that the online retailer did not have to count on approval for the takeover. But the American competition watchdog also had major doubts about the deal. The regulators are afraid that Amazon will favor iRobot’s Roomba vacuum cleaner in its online store in the event of a takeover.
For that reason, Brussels had asked Amazon to make binding agreements. But the company did not respond to this. Instead, the company prepared a lawsuit against the regulator’s final decision.
Amazon wanted to acquire iRobot for the equivalent of 1.3 billion euros to expand its range of smart home services. But there are concerns about that too. Competition authorities are afraid that this will give the company too much power due to the amount of data it can collect.
The consequences of the failed takeover are major for iRobot. Since peaking in 2021, the company’s vacuum cleaner sales have fallen by almost half. In addition, iRobot’s stock market value has plummeted due to speculation about the possible blocking of the takeover.
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2024-01-29 14:57:07
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