Amazon’s acquisition of iRobot, the manufacturer of Roomba robotic vacuum cleaners, is facing scrutiny from regulatory authorities not only in the United States but also in Europe. The European Commission has recently announced that it has launched an in-depth investigation into the $1.7 billion purchase, expressing concerns about potential anti-competitive practices in the robotic vacuum cleaner market.
The primary worry of the commission is that Amazon’s ownership of iRobot could result in a restriction of competition. Specifically, the commission is concerned that Amazon might impede iRobot’s rivals from selling their own robot vacuums on its marketplace. This apprehension arises from the possibility that Amazon could give preferential treatment to iRobot’s products in search results, both paid and unpaid, or charge higher advertising fees to competitors. These actions could create an unfair advantage for iRobot, potentially limiting consumer choice and competition in the market.
Moreover, authorities are also focusing on the potential implications for voice control technologies. The European Commission is worried that Amazon might prevent iRobot’s rivals from accessing future Alexa APIs (Application Programming Interfaces) and restrict them from obtaining the “Works with Alexa” certification. This certification is highly desirable for robot vacuums, as voice control with Amazon’s virtual assistant is a significant selling point. Limiting competitors’ access to these features could further stifle competition in the market.
Another concern raised by the commission is the potential access that Amazon could gain to iRobot users’ data. The European Commission believes that this data could provide Amazon with a significant advantage, allowing the e-commerce giant to personalize and target advertisements more effectively. This raises concerns about privacy and the potential for Amazon to exploit the data to gain a competitive edge in the market.
The European Commission will collaborate with other competition authorities to thoroughly investigate these concerns, and it has set a deadline of November 15th to finalize its findings. In the United States, the Federal Trade Commission (FTC) has already initiated a probe into the acquisition following requests from politicians of both parties to oppose the deal.
In response to the investigation, an Amazon spokesperson informed Reuters that the company is committed to working with the European Commission to address their questions and any identified concerns. The spokesperson also highlighted the potential benefits of the acquisition, stating that Amazon’s resources could accelerate innovation for iRobot while reducing prices for consumers.
As the European Commission delves into the details of the acquisition, the outcome of their investigation will have implications not only for Amazon and iRobot but also for the broader market and consumers. The regulatory scrutiny reflects a growing awareness of the need to preserve fair competition and protect consumer interests in the rapidly evolving technology sector.
