With regulatory concerns about deals by Big Tech, Amazon’s $1.7 billion bid for iRobot Corp (IRBT.O), maker of the robotic vacuum cleaner Roomba, is likely to draw tough backlash.
The Financial Times reported earlier that the European Union is investigating Amazon’s August purchase announcement, adding that regulators have sent the e-commerce giant a series of detailed questions regarding the proposed transaction.
EU antitrust regulators, as well as U.S. and UK regulators, are increasingly wary of giant companies acquiring smaller rivals, but the company has not yet formally requested their approval. If the EU antitrust watchdog has serious concerns about a deal, it typically conducts a full-scale investigation.
There is a focus on how iRobot’s Roomba vacuum cleaner takes pictures as it travels around a house, according to the FT. According to the U.S. Federal Trade Commission, the move would be the result of assessing whether Amazon’s market power would increase as a result of the transaction.
Alexis Boutilier is from Vancouver, British Columbia. She has a high interest in all things tech and loves to stay engaged on all the latest appliances and accessories.