EU Plans to Investigate Amazon's $1.7 Billion Acquisition Deal of iRobot Vacuum
EU Plans to Investigate Amazon's $1.7 Billion Acquisition Deal of iRobot Vacuum
The European Union Antitrust Commission (EU) is set to probe Amazon's $1.7 Billion Acquisition deal to purchase the Roomba-maker iRobot, in the latest signal that big tech groups will receive greater scrutiny over dealmaking.
The EU regulators have sent the e-commerce giant a series of detailed questions over the proposed transaction, indicating that they are gearing up for a formal probe, the report said.
Further, the Regulator has reportedly sent the $1trillion tech giant a series of detailed questions over the proposed transaction.
The antitrust watchdogs are likely to launch a formal probe over how iRobot's autonomous vacuum cleaner Roomba operates, particularly its ability to take pictures as it moves around a home, the report added.
On the other hand, the US Federal Trade Commission (FTC) is scrutinizing the deal over concerns as it would intensify Amazon's market power in the home electronics sector, investigators at the European Commission, the bloc's executive arm, have privacy concerns.
The multinational tech e-commerce giant is gearing to fight the EU's concerns by pointing to restrictions built into the Roomba device, arguing that it only has basic sensor mapping that is unlikely to bridge any data privacy, as reported.
According to sources who have direct knowledge of the deliberations said it would still take weeks for the EU's regulators to launch an initial "phase 1" investigation, and the timing could yet slip. They added that if Amazon was unable to appease concerns, regulators would then move towards a more extensive "phase 2" probe.
Even few US lawmakers have requested the FTC to oppose the deal.
A Democratic senator, Elizabeth Warren, said in her statement that, "the FTC should oppose this proposed merger to protect competition, lower consumer prices and rein in Amazon's well-documented anti-competitive activities," soon after the deal was first announced in August last year. The FTC has since requested more information about the transaction.
