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Amazon's takeover of vacuum cleaner maker iRobot is set to be blocked by the European Union's competition watchdog, reported Shiona McCallum for BBC News.
Amazon moved to buy iRobot, maker of the Roomba cleaner, in August 2022 in a takeover deal set to cost $1.7 billion (£1.4 billion). I Photo: iRobot
It's a blow to the tech giant, which was previously given the all-clear for the purchase by the UK government's competition watchdog. The Competition and Markets Authority (CMA) found that its place in the UK market was "modest" and that it already faced several significant rivals.
The online giant moved to buy iRobot, maker of the Roomba cleaner, in August 2022 in a takeover deal set to cost $1.7 billion (£1.4 billion).
It was looking to expand its footprint in the market for smart home appliances.
Regulators are worried that iRobot's tie-up with Amazon could make it difficult for other vacuum makers to compete, especially if Amazon were to give Roomba benefits over rivals on its e-commerce site.
The European Commission (EC), which serves as the EU's competition watchdog, opened an investigation into the purchase last July.
The EC has a legal deadline of February 14 to make its decision, but the commission's 27 top political leaders will need to reach a consensus on the rejection before a final decision can be issued.
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