The UK’s Competition and Markets Authority (CMA) gave the go-ahead to the deal stating that Amazon did not breach any competition concerns.
Earlier today Friday, June 16, the British competition regulator gave Amazon the go-ahead for its planned acquisition of Roomba vacuum cleaner maker – iRobot Corporation.
The UK’s Competition and Markets Authority (CMA) said it had cleared the deal which would not lead to any competition concerns in the country. Earlier in April 2023, the Capital Markets Authority began investigating the transaction that Amazon.com Inc (NASDAQ:AMZN) struck in August of the previous year. Amazon wanted to add more smart home devices to its lineup, such as the Alexa voice assistant, smart thermostats, security devices, smart wall displays, and a robot named Astro that looks like a dog. The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol has considered three potential areas of interest.
- The first is whether Amazon would start selling robotic vacuum cleaners if the merger didn’t happen, and if that would reduce competition significantly.
- The second is whether Amazon can use its online store to give iRobot’s competitors a disadvantage if a merger takes place.
- The third is whether iRobot vacuum cleaners are important to “smart home” platforms, and whether Amazon could give its smart home competitors a disadvantage if a merger happens.
Speaking of development, an Amazon spokesperson He said:
“We are pleased with the UK Competition and Markets Authority’s decision and are committed to supporting the regulators in their work. We look forward to similar decisions from other regulators soon.”
The CMA-Amazon deal has no competition concerns
After conducting due diligence, the CMA concluded that Amazon’s deal to acquire iRobot would not violate any of the regulator’s competition concerns. The CMA found that iRobot does not have significant market share in the UK for robotic vacuum cleaners and already faces significant competition. Therefore, Amazon’s entry will not have a significant impact on the market.
Even though Amazon is a major retailer, it wouldn’t have a strong incentive to hurt other robotic vacuum manufacturers. The UK market for these detergents is small and not expected to grow much, so the benefits will be limited. Additionally, pursuing such a strategy would be costly for Amazon.
The iRobot acquisition wouldn’t hurt Amazon’s competitors in the “smart home” market. Robotic vacuum cleaners and the data they collect are not considered essential to the UK smart home market. There are also other vacuum cleaners with similar capabilities that could be part of competing “smart home” offerings.
Colin Raftery, Senior Director, Mergers, Capital Markets Authority, said:
“It marks a significant milestone, and the two companies continue to work collaboratively with other relevant regulators in their review of the merger.”
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Bhushan is a financial technology enthusiast with a good knack for understanding financial markets. His interest in economics and finance has turned his attention towards the new emerging Blockchain technology and Cryptocurrency markets. He is persistent in the learning process and keeps himself motivated by sharing the knowledge gained. In his spare time he reads fantasy and thriller novels and occasionally explores his culinary skills.