The European Commission is still concerned about Amazon’s takeover of iRobot

The European Commission is still concerned about Amazon’s takeover of iRobot. Earlier, Reuters sources said Amazon would receive “unconditional approval.” The Commission is afraid that Amazon will thwart iRobot competitors in its online store after the takeover.

Amazon could disrupt the robot vacuum cleaner market with the acquisition fears the European Commission. This mainly concerns Amazon’s online store, where, among other things, robot vacuum cleaners are sold. Amazon’s online store is an important sales channel for robot vacuum cleaners, particularly in France, Germany, Italy and Spain, the Commission said.

The tech giant could likely make more money from sales of its own iRobot vacuum cleaners than from sales of rivals’ robot vacuum cleaners, the Commission said. This is partly because Amazon can collect more data through its own iRobot vacuum cleaners than through third-party robot vacuum cleaners. Amazon could therefore stop selling competing robot vacuum cleaners or make them less visible by, for example, placing them lower in rankings. Amazon could also increase advertising or sales costs for competitors.

The Commission says such behavior could limit competition, causing customers to pay more for robot vacuum cleaners and reducing innovation. The Commission based this assessment, among other things, on internal documents from Amazon and iRobot, and by approaching competitors. Amazon now has time to respond to the Commission’s concerns, after which the Commission will make a final decision. According to the current schedule, the final decision must be announced before February 14.

Last week, Reuters sources said the Commission would approve the takeover without conditions. Amazon announced the acquisition in August last year. The company wants to pay $1.7 billion for iRobot.