The UK’s Competition and Markets Authority (CMA) has given the green light to Amazon’s proposed acquisition of robotic vacuum manufacturer iRobot, the company behind the popular Roomba, despite the deal’s pending approval in the United States and Europe. The CMA found no cause to escalate its preliminary investigation, stating that it does not believe the $1.7 billion purchase would significantly lessen competition within the UK market.
Amazon expressed satisfaction with the decision, hoping for similar outcomes from other global regulators. “We anticipate favourable rulings from other regulatory bodies soon,” the e-commerce giant stated.
However, consumer groups have voiced apprehensions that Amazon’s acquisition of iRobot, based in Bedford, Massachusetts, may broaden the company’s already powerful position in the smart home industry.
The proposed buyout is currently under review by the Federal Trade Commission, with concerns about Amazon’s escalating market power. The deal is also under the microscope of the European Union’s executive branch, which commenced an investigation earlier this month.
In its decision, the UK regulator stated that robotic vacuum cleaners and the data collected do not generally play a significant role in the budding smart home devices market. It was also noted that iRobot only has a moderate market presence in the UK, is up against “several significant competitors,” and that Amazon is unlikely to favour its products over competitors on its online marketplace.
The implications of Amazon’s acquisition of iRobot extend beyond just robotic vacuums; it will also have a significant bearing on the broader innovative home sector. However, the approval of the UK’s competition watchdog is a positive step for the deal. What remains is to see how regulators in the U.S. and Europe will respond. With such significant decisions pending, Amazon’s move into the smart home market could secure a dominant position or face substantial challenges.
