Josiah
Amazon and Roomba iRobot have decided to terminate their planned acquisition due to concerns raised by EU antitrust regulators. The acquisition, initially announced in August 2022, faced opposition from the EU, particularly regarding potential infringements on iRobot rivals in online marketplaces, particularly in France, Germany, Italy, and Spain.
The US Federal Trade Commission (FTC) also expressed concerns about Amazon’s online market dominance and initiated an investigation following the announcement of the acquisition. Amazon has been under FTC scrutiny since September 2023, facing a lawsuit alleging violations of federal and state antitrust laws and accusations of monopolistic control.
This termination marks the first instance where Amazon has been prevented from acquiring another company. It is part of a trend where several significant tech acquisitions have fallen apart in recent years, reflecting the substantial influence of EU and US antitrust regulators in the e-commerce sector. Other notable cancellations include Abode’s $20 billion deal with Figma in 2023 and Nvidia’s $40 billion Arm deal.
Despite the termination of the deal, Amazon will not be required to pay $94 million to iRobot. However, iRobot’s shares have experienced a decline of over 18% in pre-market trading.
