🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Amazon says it is in talks with regulators on Roomba vacuum maker deal

Published 15/02/2023, 12:12
© Reuters. FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, August 8, 2018. REUTERS/Pascal Rossignol/File Photo
AMZN
-

By Samrhitha A and Chavi Mehta

(Reuters) -Amazon said on Wednesday it is in talks with regulators on its $1.7 billion bid for iRobot Corp, maker of the robotic vacuum cleaner Roomba, with the takeover likely to draw tough scrutiny due to regulatory concerns about deals by Big Tech.

The Financial Times reported earlier that the European Union is set to investigate the purchase that Amazon (NASDAQ:AMZN) announced last August, adding that regulators have sent the e-commerce giant a series of detailed questions over the proposed transaction.

"We're working cooperatively with the relevant regulators in their review of the merger," an Amazon spokesperson said. The company declined to comment on the FT report.

The company has yet to formally seek approval from the European Commission, which in common with U.S. and UK antitrust regulators has become increasingly wary of giant companies acquiring smaller rivals.

The EU antitrust watchdog typically follows up a preliminary review of deals with a full-scale investigation if it has serious concerns.

The FT reported that the EU focus is on how iRobot's autonomous vacuum cleaner Roomba operates, particularly its ability to take pictures as it moves around a home,.

© Reuters. FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, August 8, 2018. REUTERS/Pascal Rossignol/File Photo

The potential move would follow the U.S. Federal Trade Commission's scrutiny of whether the transaction would increase Amazon's market power.

The Commission did not immediately respond to Reuters' requests for comment. iRobot declined to comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.