It’s a setback for the tech behemoth, whose acquisition was previously approved by the UK government’s antitrust agency.
According to the Competition and Markets Authority (CMA), it already faced a number of sizable competitors and had a “modest” position in the UK market.
Amazon did not respond to requests for comment.
In August 2022, the online behemoth made a takeover move to purchase iRobot, the company that makes the Roomba vacuum cleaner, for an estimated $1.7 billion (£1.4 billion).
It aimed to increase its market share in the smart home appliance sector.
Regulators, however, are concerned that iRobot and Amazon’s partnership may make it harder for rival vacuum manufacturers to compete, particularly if Amazon decides to give the Roomba advantages over competitors on its online marketplace.
The EU’s watchdog over competition, the European Commission (EC), launched an inquiry into the purchase in July of last year.
The 27 most powerful political members of the commission must agree to reject the proposal before the EC can make a final decision. The EC has until February 14 to make a decision.
Following the Wall Street Journal’s initial report of the EU’s intentions, iRobot shares fell 40% in after-hours trading.
Given that the company has struggled, the Amazon takeover was seen as a blessing for it.
“This makes no sense if the goal is to increase competition in the home robotics sector,” stated Matt Schruers, president of the Computer and Communications Industry Association, a tech lobbying group.
“Blocking this deal may well leave consumers with fewer options, and regulators cannot sweep that fact under the rug,” Schruers stated to Reuters.
In the UK, roomba models retail for about £1648.
