Amazon’s iRobot Takeover on Course for Approval by February

European Union antitrust regulators set a Feb. 14 deadline to approve Amazon’s $1.4 billion purchase of iRobot, the maker of Roomba, according to a report Reuters Monday. The extended deadline gives the European Commission two more months to approve the deal, which Amazon has lowered its bid for amid regulatory delays after the investigation was halted awaiting missing information from the companies.

As of 2020, iRobot held the largest market share of the worldwide robot vacuum cleaner (RVC) space, according to Statista. US Democrats led by Elizabeth Warren (D-MA) said the deal was anticompetitive and should be rejected in a letter to the Federal Trade Commission. Regulators fear the deal would give the maker of Roomba an unfair advantage against other RVCs, as well as strengthen Amazon’s position as an online marketplace provider. The EU’s previous deadline to approve the deal was Dec. 13.

Two dozen human rights groups asked the FTC to block Amazon’s acquisition of iRobot in a letter, saying the purchase of a “competing smart home device business” is anticompetitive, and would harm the overall consumer technology market. The group letter also cited the consumer data that could be sucked up by Roomba, which takes video footage of customer homes to map the floor plan as it’s vacuuming. Amazon currently has smart devices in about a third of US households, and the expansion has been flagged by these groups as a violation of user privacy.

Amazon says it’s “working cooperatively with the relevant regulators in their review of the merger.” Amazon also told Gizmodo it has no plans to use iRobot’s technology in its factories.

Amazon currently faces an FTC lawsuit alleging an illegal monopolization of the e-commerce space, but not specifically concerning the iRobot deal. “We’re bringing this case because Amazon’s illegal conduct has stifled competition across a huge swath of the online economy,” said FTC Bureau of Competition Deputy Director John Newman last month when the lawsuit was filed.