WASHINGTON: Amazon on Monday said it was scrapping its plans to buy the iRobot vacuum maker after the European Union’s (EU) antitrust authority objected to the plan over competition concerns.
David Zapolsky, Amazon SVP and General Counsel, said that they are disappointed that Amazon’s acquisition of iRobot could not proceed.
The EU in July opened an antitrust probe into Amazon’s 1.7-billion dollars purchase of iRobot, which is best known for its Roomba self-operating vacuum cleaners.
The bloc at the time said it was investigating whether the acquisition would allow Amazon to restrict competition and strengthen its position as an online marketplace provider.
The EU said it was especially concerned that Amazon’s role as the world’s preeminent internet retail center would allow it to crush competition from other vacuum-makers seeking online buyers.
Questions over data usage by Amazon
The European Commission also pointed to questions over how Amazon would use the data collected by the self-driving devices of iRobot that upload detailed information about the user’s home.
The EU’s deadline to decide on the agreement was February, and media reports widely reported that the commission would lay down its veto.
Amazon authorities believed that given the objection of the commission and the lack of acceptable remedies to satisfy their concerns, there was no way forward for the treaty.
