European authorities investigate Amazon’s acquisition of iRobot

The European Commission has launched a thorough investigation into Amazon’s acquisition of iRobot, the maker of Roomba, due to concerns about potential competition limitations in the robotic vacuum cleaner market. The commission is worried that Amazon could hinder iRobot’s competitors from selling their own robot vacuums on its platform. It is also concerned that Amazon might give preferential treatment to iRobot’s products in search results and charge higher advertising fees for competing products.

In addition, officials are concerned about the possibility that Amazon will block iRobot’s competitors from accessing future Alexa APIs and obtaining “Works with Alexa” certification, since voice control with the assistant is one of the main selling points of robot vacuum cleaners. Finally, the commission has raised concerns about Amazon’s access to iRobot’s user data, which it believes gives the e-commerce giant a “significant advantage.” For example, Amazon could use this information to personalize and target ads better. The bottom line is that “the deal could raise barriers to entry and expansion for Amazon’s competitors to the detriment of consumers.”

The Commission is now looking into these concerns in cooperation with other competition authorities and has until November 15 to finalize the results. In the United States, the Federal Trade Commission launched an investigation into the acquisition last year after politicians from both parties asked it to oppose the purchase.

An Amazon spokeswoman told Reuters that the company “continues to work through the process with the European Commission and is focused on addressing its questions and identified concerns at this stage.” They also told the news organization that Amazon could “provide a company like iRobot with the resources to accelerate innovation and invest in critical capabilities while lowering prices for consumers.”