EU Regulator Urges Amazon to Ensure Equal Treatment of iRobot Competitors
Didier Reynders, the interim competition chief of the European Union, has warned that Amazon.com Inc. needs to commit to impartially ranking competing robot vacuum cleaners on its online marketplace in order to gain approval for its $1.4 billion acquisition of iRobot Corp., the manufacturer of Roomba.
His comments follow the European Commission’s decision last week to issue a formal statement of objections listing possible reasons for blocking the deal unless Amazon makes an offer to remedy them.
“The main thing is to make sure that all the different actors are treated fairly,” EU Competition Commissioner Didier Reynders told reporters after the event in Brussels.
Reynders, who is serving as competition commissioner Margrethe Vestager while running for the European Investment Bank’s top job, said Amazon should commit to ensuring the visibility of correct and transparent information about rival vacuums and to place them fairly on the company’s marketplace. .
In a filing last week, the EU’s competition watchdog said Amazon could be tempted to undercut other robot vacuums on its platform and promote its own products with labels such as “Amazon’s Choice” or “Works With Alexa.” The commission also said that Amazon may find it “economically viable” to exclude its competitors.
Although receiving a notice of objection indicates that the EU has serious concerns about the transaction, most merging companies avoid a veto by addressing competition issues. Companies also have the right to challenge the regulatory authorities’ preliminary findings in writing or at an oral hearing.
Shares of the robotic vacuum cleaner were trading at about $37.28 at 11 a.m. in New York, about 28% below Amazon’s $51.75 per share offer.
