Amazon, iRobot abandon merger in face of EU opposition

Amazon AMZN.O and robot vacuum maker iRobot IRBT.O said Monday they would end their plans to merge in the face of opposition from EU antitrust regulators.

Amazon said its proposed $1.4 billion acquisition of iRobot had no path to regulatory approval in the European Union. Reuters reported earlier this month the deal would be blocked by European Commission antitrust regulators and that its main concerns were that Amazon may thwart iRobot rivals on its online marketplace, especially in France, Germany, Italy, and Spain.

Amazon announced the deal in August 2022. The world’s largest online retailer, which already owns Alexa and Ring, was pushing to expand its stable of smart home devices as well as expanding the e-commerce giant’s virtual healthcare.

Critics opposed the deal, saying it would strengthen Amazon.com’s already powerful position in smart home devices.

(Reuters)