Amazon will not get its hands on the American company iRobot, specializing in domestic robotics (such as Roomba vacuum cleaners). The fault is European regulations, according to the e-commerce giant.
This is a big miss for Amazon. In a press release shared on January 29, 2024, we learn that the e-commerce giant is abandoning the acquisition of the American company iRobot, specializing in domestic robotics. It sells automated and connected vacuum cleaners under the Roomba brand.
This operation, publicly revealed in August 2022, would have made iRobot one of the most important acquisitions of the company founded by Jeff Bezos. Estimated at 1.7 billion dollars (around 1.57 billion euros) initially, the maneuver ultimately provided for a transaction worth 1.4 billion dollars (around 1.3 billion euros).
This operation, if it had been completed, would have been the fourth most expensive in Amazon’s history. The podium is currently occupied as follows:
According to Amazon, the arrival of iRobot in its portfolio of goods and services would have enabled it “ to invest in iRobot’s continued innovation and help it reduce prices on products customers already love “. But the Seattle-based firm points to the regulatory context being too unfavorable in Europe to complete the agreement.
Europe’s fault, according to Amazon
“ Amazon’s proposed acquisition of iRobot has no chance of being approved by European Union regulators, making it impossible for Amazon and iRobot to move forward together — a loss for consumers, competition and ‘innovation », Regrets the press release.
The European Commission has indeed followed this matter very closely. On November 27, 2023, Brussels estimated on the contrary that this acquisition “ was likely to restrict competition in the robot vacuum cleaner market “. The European authority had listed the various points justifying its reluctance to approve the deal.
Among other things, the Brussels services feared that Amazon could use its site to “ implement several eviction strategies » in order to rule out iRobot’s rivals, and thus make its acquisition profitable more quickly thanks to better visibility. Conversely, competition could suffer, because it is very difficult to do without Amazon.
According to information from Politico, Amazon missed a first deadline on January 10, 2024 allowing it to respond to the Commission’s grievances. The official website allowing the file to be followed has since indicated a new deadline, set for February 14. Ultimately, there will be no need to wait until then.
Privacy fears
Elsewhere in the world, the takeover of iRobot was appreciated differently. In the United Kingdom, the competition authority authorized this operation in mid-June 2023. On the other hand, the American body was carrying out investigations into the acquisition. Several NGOs stood against this project.
With iRobot, Amazon would have further strengthened its control over home automation and robotics. The voices hostile to this takeover highlighted the risk of letting Amazon enter a little more into homes, via robot vacuum cleaners, while the company does not enjoy an impeccable reputation in terms of privacy and confidentiality.
“ There is no space more private than home. Yet, thanks to this acquisition, Amazon will be able to access extremely intimate information about our most private spaces, which is not available by other means or to other competitors “, we can read in the NGO missive.
“ This information goes beyond house plans and includes very detailed information about the interiors of consumers’ homes and the lifestyles of their inhabitants. Allowing Amazon to access this type of private information through this acquisition harms consumers », They add.
Amazon, however, retains other possessions in the field of home automation:
- 2lemetry: analysis of data from connected devices
- Blink: connected surveillance cameras and doorbells;
- Ring: connected surveillance cameras and doorbells;
- Eero: Wi-Fi routers;
- and Echo connected speakers, which can capture sounds to respond to spoken instructions.
For its part, iRobot will therefore continue its journey. A sequel which begins with a restructuring plan, supposed “ prepare for the future “. 350 people (or 31% of employees) will be made redundant by March 30, 2024. As for Colin Angle, the founder who held the position of both CEO and chairman of the board of directors, he is giving up his two places . However, he remains on the council until the end of his mandate.
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