$1.7 billion. This is the amount of the purchase by Amazon of the manufacturer of robot vacuum cleaners iRobot. This acquisition, announced by the digital giant last August, should be the subject of an antitrust investigation launched by the European Union, according to sources familiar with the matter. This type of procedure allows the European Commission to ensure the proper application of EU competition rules.
More specifically, the Commission should launch this four-month procedure on July 6, after the preliminary examination. The announcement comes just weeks after the UK approved the deal.
Through this transaction, the EU fears that Amazon will breach the privacy of its customers’ data. Indeed, by combining the data collected by its devices – the Echo speakers, the Alexa assistant, the Ring and Blink home automation devices and the iRobot robot vacuum cleaners – Amazon would be able to know the users’ homes in the smallest detail.
Sources on the record believe it is unlikely that Amazon will come up with viable solutions during this initial phase. Nevertheless, this procedure constitutes for the American giant an opportunity to demonstrate that the acquisition is not contrary to EU competition rules.
At this time, neither the Commission nor Amazon have expressed an interest.