The iRobot acquisition is facing new problems following 30% shares plunge on Thursday as European Union regulators intend to block Amazon from the deal.
The European Commission earlier told Amazon that the request for the iRobot acquisition is likely to be reject, a person familiar with the company told The Wall Street Journal.
Stock price for the Roomba maker closed down from $27.54 to $14.3 per share soon after.
Recent updates have moved regulators on blocking Amazon's proposed $1.7 billion acquisition of iRobot, citing competition concerns on the region. A final decision is expected by Feb. 14.
Amazon or iRobot has yet to provide a statement regarding the latest roadblock on the deal. The e-commerce giant first announced the acquisition in August 2022, almost two years ago now.
Regulators Raise Concern Over Amazon-iRobot Acquisition
The EC have been delaying the Amazon acquisition in the grounds that the company could delist or reduce the visibility of other smart vacuums on its platform.
The commission first launched its in-depth investigation on the deal last July and has since been raising more concerns over the purchase.
Amazon is among the Big Techs included in EU's "gatekeepers," considered to be monopolizing the market in the region and restricting growth from its competitors through its online platforms.
In turn, the e-commerce giant has been adamant to not offer any remedies regarding the commission's concern.
Elsewhere, the deal is going relatively well. The US Federal Trade Commission is still reviewing the proposal, while the UK Competition and Market Authority assured that the deal will not result "a substantial lessening of competition."
Related Article : EU Watchdog Requires Amazon to Rank iRobot Rivals Fairly
Why the iRobot Acquisition Matters?
Before its shares drop on Thursday, iRobot is the biggest maker for smart robot vacuums, earning $1.56 billion revenue in 2021.
Its signature product, Roomba, has been sold 50 million times all over the world.
With Amazon handling its operations, its sales are expected to double despite the revenue drop since the EC probe.
Rival companies are concerned that such acquisition willy surely impact the market and possibly kill the competition thanks to Amazon's bigger reach.
