Report that the EU will block Amazon's plan to acquire iRobot, the maker of robot vacuum cleaner Roomba, for 250 billion yen
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Amazon announced that it has entered into a contract to acquire electronics manufacturer iRobot for approximately $1.7 billion (approximately 250 billion yen) in 2022. Foreign media outlet The Wall Street Journal reports that the EU's market competition authorities are expected to take action against this acquisition plan.
EU Commission Intends to Block Amazon's iRobot Acquisition - WSJ
https://www.wsj.com/tech/eu-commission-intends-to-block-amazons-irobot-acquisition-268a8a1b
iRobot shares tank 30% on report EU plans to block Amazon acquisition
https://www.cnbc.com/2024/01/18/irobot-shares-tank-30percent-on-report-eu-plans-to-block-amazon-acquisition.html
EU regulators plan to block Amazon's $1.7B iRobot acquisition: report
https://nypost.com/2024/01/18/business/eu-regulators-plan-to-block-amazons-1-7b-irobot-acquisition-report/
Experts have expressed disapproval of e-commerce giant Amazon's move to absorb iRobot, a leading company in robot vacuum cleaners, calling it ``the most dangerous and threatening acquisition in Amazon's history'' due to concerns that it will hinder market competition. In addition to this , regulators in the UK and EU are also launching investigations one after another.
Regulatory authorities investigate Amazon's acquisition of Roomba developer for 220 billion yen - GIGAZINE
The Wall Street Journal reported on January 18, 2024 that EU authorities plan to block Amazon's acquisition of iRobot, according to a person familiar with the matter.
According to the person, competition officials from the European Commission, the EU's executive agency, met with Amazon representatives on the same day to discuss the acquisition deal. During the meeting, Amazon was told that the deal was likely to be rejected, the people said.
For the EU's European Commission to take a final decision to reject a deal, it requires formal approval by its 27 members, but historically the process has been carried out by European Commission Executive Vice President Margrethe Vestager. 's recommendation is unlikely to be overturned, The Wall Street Journal noted.
'Amazon is both an online marketplace and a retailer,' Vestager said in a statement at the beginning of the investigation. 'I'm concerned that the market will be shut out of the market,' he said, expressing a strong sense of caution.
While the European Commission hardened its stance on the takeover, Amazon effectively ignored the Commission's concerns by failing to submit a concession proposal by the January 10 deadline, which was the last chance to argue with the Commission. is reported .
The deadline for final decisions is February 14, 2024. Multiple media outlets contacted the European Commission and Amazon for comment, but did not receive a response.
Others in the industry have said they would not welcome the authorities blocking the iRobot acquisition. Matt Schreers, president of the Computer and Telecommunications Industry Association, an American lobby group, told the New York Post: ``If the goal is to increase competition in the home robotics field, there is no point in blocking the European Commission.'' No. Blocking this transaction could reduce consumer choice, and regulators will not be able to hide that fact.'
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