The European Union’s competition watchdog plans to dam Amazon’s $1.7 billion deal for robot vacuum maker iRobot, The Wall Street Journal reported Thursday, citing people accustomed to the matter.
Shares of the Roomba vacuum maker plunged 40% to $14 after the bell.
Officials from the European Commission met Amazon’s representatives on Thursday to debate the deal, the report said.
The tech giant didn’t offer remedies to the European Union antitrust regulator until the Jan. 10 deadline to handle concerns the deal could reduce competition and reinforce Amazon’s e-commerce platform dominance.
The WSJ reported that Amazon was informed through the meeting that the deal was more likely to be rejected.
Amazon declined to comment on the report.
“If the target is to have more competition in the house robotics sector, this is mindless,” said Matt Schruers, president of tech lobbying group Computer and Communications Industry Association.
“Blocking this deal may possibly leave consumers with fewer options, and regulators cannot sweep that fact under the rug,” Schruers added.
Shares of the Roomba vacuum maker plunged in after hours. Getty Images
Amazon didn’t offer remedies to the European Union antitrust regulator. REUTERS
The e-commerce giant disclosed its plans to purchase iRobot in August 2022, because it looks to add to its portfolio of smart devices, which include the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.
The European Commission, which serves because the EU’s competition watchdog, had until Feb. 14 to either approve or reject the deal.
