United Kingdom antitrust regulator The Competition and Markets Authority, has officially cleared Amazon’s heading.7 billion acquisition of Roomba maker iRobot.
In a statement released to the public today, the CMA concluded that “the deal would not lead to competition concerns in the UK.” The regulator found that iRobot’s market position of robot vacuum cleaners in the UK is “modest,” and there are already several significant rivals in the industry. At the same time, the CMA believes Amazon lacks the incentive to disadvantage said competitors.
“More people are choosing to use ‘smart’ tech in their homes – whether that’s listening to the radio through a smart speaker, answering the door using a video doorbell, or keeping floors clean with robot vacuum cleaners,” says Senior Director of Mergers at the CMA Colin Raftery,
“That’s why it’s important to ensure tech firms that already benefit from powerful positions aren’t able to use those positions to undermine competitors at the expense of UK consumers and businesses.”
Another major piece here is that the CMA asserts that robot vacuum cleaners are generally not considered to be an important input for the “smart home” market, meaning Amazon’s acquisition wouldn’t have a drastic effect on said market. The investigation was first launched in April 2023, and you can head to the CMA’s official site for a more thorough explanation of its decision.
Although Amazon’s purchase has cleared this hurdle, the deal still needs to be cleared by regulators in other countries, including the United State’s Federal Trade Commission. In an official statement, Amazon said, “We look forward to similar decisions from other regulators soon.”
Consumer groups have raised concerns about Amazon’s ever-growing market share and how the purchase of iRobot, based in Massachusetts, could further the company’s hold on the smart home market.
Amazon’s purchase of iRobot isn’t the only deal to face major scrutiny this year, as Microsoft’s massive $69 billion purchase of Activision Blizzard continues to face significant roadblocks within both the CMA and the rest of the world.
