EU Antitrust Arm Raises Concerns Over Amazon's $1.4 Billion iRobot Acquisition

According to Yahoo News, Amazon.com Inc.'s $1.4 billion acquisition of Roomba maker iRobot Corp. may face obstacles unless the companies address a list of competition concerns raised by the European Union's antitrust arm. The European Commission issued a statement of objections on Monday, warning that Amazon's proposed deal could negatively impact the market for manufacturing and supplying robot vacuum cleaners, and allow the ecommerce giant to strengthen its position in the market for online marketplaces and other data-related services. Shares of Bedford, Massachusetts-based iRobot fell as much as 25% on the news, marking the largest intraday drop in nearly three years. The commission currently has a deadline of February 14 to decide whether to approve the iRobot deal with concessions or block it. The EU's warning listed concerns including Amazon potentially demoting other robot vacuum cleaners on its platform and using labels for its own products such as "Amazon's choice" or "Works With Alexa." The commission also said Amazon may find it "economically profitable" to shut out rivals. An Amazon spokesperson stated that the company is focused on addressing the European Commission's concerns.