(Finance) – Amazone-commerce giant, e iRobotthe number 1 brand in the world in sales of robot vacuum cleaners, have announced that they have terminated their previously announced acquisition dealsigned on August 4, 2022, under which Amazon would acquire iRobot for cash in a $1.4 billion deal.
Amazon’s proposed acquisition of iRobot”it has no path to regulatory approval in the European Union“, the companies explained in a statement.
“Mergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies and countries that are not subject to the same regulatory requirements in rapidly evolving technology segments like robotics,” he said. David ZapolskyAmazon Senior Vice President and General Counsel – Undue and disproportionate regulatory barriers discourage entrepreneurswho should be able to see the acquisition as a path to success, and that hurts both consumers and competition, the very things regulators say they’re trying to protect.”
“Our thorough investigation preliminarily demonstrated that acquiring iRobot would enable Amazon to foreclose iRobot’s rivals by limiting or degrading access to Amazon Stores – said the Executive Vice President of the EU Commission, Margrethe Vestager – For example, Amazon would have been in a position to remove or not list rival robot vacuum cleaners; reduce the visibility of rival robot vacuum cleaners displayed on Amazon’s marketplace; limit access to certain widgets or certain commercially attractive product labels; or increase the costs incurred by iRobot’s rivals to advertise and sell their robot vacuum cleaners on the Amazon marketplace.”
Vestager, the head of competition within the European Commission, explained that “when evaluating operations of this type, it is crucial to take into account what the operation would mean for rivals and customers of the merged entity. This applies in particular for the transactions through which Large, established sales channels acquire suppliers who are highly dependent on infrastructure and the buyer’s customer reach to succeed in the EEA market.”