Amazon has also reportedly lowered its offer for iRobot amid regulatory delays and iRobot incurring debt
Last year, it was announced that Amazon was looking to acquire the robot vacuum maker iRobot for $1.7 billion USD (roughly $2.2 billion CAD at the time).
The bid has been waiting for a thumbs-up from European Union regulators, the deadline for which has now been extended to Valentine’s Day, 2024. The previous deadline was December 13th, 2023.
According to Reuters, the EU Commission paused its investigation into the deal in October, waiting for more information from Amazon and iRobot. Amazon has also reportedly lowered its offer for iRobot amid regulatory delays and iRobot incurring debt.
If the acquisition goes through, it’s sure to bolster Amazon’s smart home offerings, considering iRobot has long dominated the robo-vacuum market.
Amazon’s iRobot Acquisition: A Cause for Concern?
There’s a buzz in the air, and it’s not just from the hum of robo-vacuums. Amazon’s proposed acquisition of iRobot, a leading player in the robo-vacuum market, has raised eyebrows and concerns among regulators and competitors alike.
The fear? That this deal could tip the scales unfairly in favor of Amazon and iRobot, leaving other robo-vacuum manufacturers in the dust.
Human Rights Groups Step In
The concerns don’t stop at market competition. In a surprising twist, around 24 human rights groups have penned a letter to the Federal Trade Commission (FTC), urging it to block the deal. Their argument? That this acquisition could potentially harm the consumer technology market and infringe on user privacy.
These groups contend that Amazon’s move to acquire a “competing smart home device business” is anti-competitive. They also express concerns that this deal would provide Amazon with a gateway to collect even more personal data from its customers.
Amazon’s Response
In response to these concerns, Amazon has stated that it is “working cooperatively with the relevant regulators in their review of the merger.” In a conversation with Gizmodo, Amazon clarified that it has no intentions of using iRobot’s technology in its factories.
As we wait for the dust to settle on this issue, it’s clear that the outcome of this deal could have significant implications for the robo-vacuum market and beyond.
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