Amazon's acquisition of iRobot has hit a snag.
The UK's Competition and Markets Authority (CMA) recently launched a merger inquiry regarding Amazon's acquisition deal with Roomba robot vacuum developer iRobot.
Amazon previously announced its acquisition deal with iRobot in early August 2022; anti-trust researchers and data privacy experts called it "the most the most dangerous, threatening acquisition in the company's history."
CMA Inquiry Into Amazon-iRobot Acquisition Deal
The CMA mentioned on its official website and statement that it had launched a "phase 1" probe into Amazon's $1.7 billion acquisition deal with iRobot.
For those unaware, the CMA's phase 1 probe consists of an inquiry to determine if a merger between two companies would result in a "realistic prospect of a substantial lessening of competition," per the government agency's resources.
As a result, the CMA is expecting Amazon to comment and talk about its acquisition deal with iRobot and its particulars since it believes that it would reduce competition in the UK. Amazon has until June 16 to address the CMA's inquiry before it decides on whether Amazon's deal will harm its competitors or not.
Amazon and iRobot have yet to address the CMA's invitation to talk about the merger deal between them, per Reuters.
The CMA's launch of its merger inquiry is the latest step in its assessment of Amazon's acquisition deal with iRobot. According to a Tech Crunch article, it previously confirmed it is investigating Amazon's acquisition deal with the Roomba robot vacuum developer in early April, though the investigation was still at its earliest possible stage at the time.
You may recall that Amazon wants to utilize iRobot to create ways to reinvent how people clean to make their lives easier and more enjoyable at the deal's completion. Colin Angle, iRobot's CEO, supports Amazon's plan, with him saying that he cannot think of a better place for the iRobot team to continue its mission of creating "innovative, practical robots that make customers' lives easier."
The Most Dangerous Deal In Amazon's History
The CMA is not the only one who wants to grill Amazon and iRobot for the acquisition deal between them. Anti-trust groups have warned that Amazon's acquisition of iRobot wouldn't just give it dominance in the smart home market - it would also mean that the company will have unprecedented access into consumers' lives, per The Guardian.
UK-based tech watchdog group Foxglove Legal wrote to the CMA that it had significant concerns about Amazon and iRobot's acquisition deal due to the former's habit of supplanting innovative entry and broader competition in existing and emerging markets.
"Amazon already spies on our doorsteps and listens in on our dinner conversations - hoovering up iRobot would put Amazon inside our living rooms," the group said in a statement.
Meanwhile, the FTC is also investigating Amazon's acquisition deal with iRobot, though there is a chance that Amazon could overcome the FTC's challenge and acquire iRobot anyway due to the Commission's current evidentiary burden.
Related Article : Amazon To Acquire iRobot in $1.7B Merger Agreement
