The European Commission is concerned about Amazon’s takeover of iRobot. The Commission is therefore launching an extensive investigation into this takeover. A decision must be made no later than November 15.
Amazon may be able to limit competition within the robot vacuum cleaner market and strengthen its online marketplace with the acquisition. states the European Commission. For example, Amazon could make it more difficult for other robot vacuum cleaner manufacturers to sell their products through Amazon’s online store, a preliminary study shows. The Commission cites examples of making it more expensive for competitors to advertise on Amazon or favoring iRobot products in search results.
After the acquisition, Amazon could also limit competitors’ access to its smart assistant Alexa, which could make Roombas more attractive. With the iRobot data, Amazon also gains customer data that allows it to display better personalized results and advertisements in its online store than other online stores.
With the extensive investigation, the Commission wants to find out whether these objections are well-founded or not. The Commission has 90 working days to make a decision, which means no later than November 15. Amazon announced the acquisition in August last year. The company wants to pay $1.7 billion for the robot vacuum cleaner maker.
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