Amazon scraps plan to hoover up iRobot
Amazon on Monday said it was abandoning its plans to buy the iRobot vacuum maker after the EU's antitrust authority objected to the plan over competition concerns. "We're disappointed that Amazon's acquisition of iRobot could not proceed," said David Zapolsky, Amazon SVP and General Counsel. The EU in July opened an antitrust investigation into Amazon's US$1.7-billion purchase of iRobot, which is best known for its Roomba self-operating vacuum cleaners. Brussels at the time said it was probing whether the acquisition would allow Amazon to "restrict competition" and "strengthen its position as an online marketplace provider." The EU said it was especially concerned that Amazon's role as the world's pre-eminent internet retail hub would allow it to crush competition from other vacuum-makers seeking online buyers. The European Commission also pointed to questions over how Amazon would use the data collected by iRobot's self-driving devices that upload detailed information about the user's personal home. The EU's deadline to make a decision on the deal was next month, and media reports widely reported that the commission would lay down its veto. Amazon executives believed that given the objection of the commission and the lack of acceptable remedies to allay their concerns, there was no way forward for the deal. "This outcome will deny consumers faster innovation and more competitive prices, which we're confident would have made their lives easier and more enjoyable," Amazon's Zapolsky said. Amazon added that it believed "undue and disproportionate regulatory hurdles" discourage entrepreneurs and hurt competition in the long run. In a statement, the companies said Amazon would pay iRobot a previously agreed upon termination fee. (AFP)