[ad_1]
A week after a report cited three people who claimed that the European Union (EU) antitrust regulators are going to approve Amazon’s $1.7 billion acquisition of robot vacuum cleaner maker iRobot, the European Commission said that the deal may restrict competition in the region.
“Amazon may have the ability and the incentive to foreclose iRobot’s rivals by engaging in several foreclosing strategies aimed at preventing rivals from selling RVCs on Amazon’s online marketplace and/or at degrading their access to it,” the Commission said.
The Commission has sent a statement of objections to the company detailing its concerns and added that the online marketplace is an important channel for robot vacuum cleaners in countries like France, Germany, Italy and Spain.
The Commission warned Amazon in July that the deal could reduce competition in robot vacuum cleaners.
What it means for Amazon
While such objections put the companies under pressure to offer remedies, it also provides a second chance for companies to better address specific issues and secure unconditional clearance.
For example, in Microsoft’s acquisition of Activision Blizzard, the Xbox maker had to make changes to the original deal but it secured them a go-ahead.
The Commission’s deadline for a decision is February 14 and as Amazon said it was working with the Commission to address its concerns, it still has much time to revisit and address concerns of the regulator.
“iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers,” the company said.
The Competition and Markets Authority (CMA) cleared Amazon’s proposed acquisition after finding that iRobot’s market position in the supply of robot vacuum cleaners in the region is modest. In August last year, Amazon announced the deal to acquire the robot cleaner maker.
“Amazon may have the ability and the incentive to foreclose iRobot’s rivals by engaging in several foreclosing strategies aimed at preventing rivals from selling RVCs on Amazon’s online marketplace and/or at degrading their access to it,” the Commission said.
The Commission has sent a statement of objections to the company detailing its concerns and added that the online marketplace is an important channel for robot vacuum cleaners in countries like France, Germany, Italy and Spain.
The Commission warned Amazon in July that the deal could reduce competition in robot vacuum cleaners.
What it means for Amazon
While such objections put the companies under pressure to offer remedies, it also provides a second chance for companies to better address specific issues and secure unconditional clearance.
For example, in Microsoft’s acquisition of Activision Blizzard, the Xbox maker had to make changes to the original deal but it secured them a go-ahead.
The Commission’s deadline for a decision is February 14 and as Amazon said it was working with the Commission to address its concerns, it still has much time to revisit and address concerns of the regulator.
“iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers,” the company said.
The Competition and Markets Authority (CMA) cleared Amazon’s proposed acquisition after finding that iRobot’s market position in the supply of robot vacuum cleaners in the region is modest. In August last year, Amazon announced the deal to acquire the robot cleaner maker.
[ad_2]
Source link
More Stories
Google Maps: Three privacy features coming to Google Maps on Android, iPhones
Most-Downloaded IPhone App: This Chinese app was the most-downloaded iPhone app in the US in 2023
Ukraine’s largest mobile operator goes offline for millions of users after cyber attack