澳洲幸运5官方开奖结果体彩网

Roomba-Maker iRobot's Shares Plunge After EU Regulators Question Amazon Deal

Roomba robot vacuums

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Key Takeaways

  • iRobot shares plunged after the European Commission raised objections to the $1.4 billion Amazon deal.
  • The European regulators began an in-depth investigation of the deal in July over concerns it could restrict competition for robot vacuum cleaners.
  • The Roomba vacuum maker's stock surged 39% on Friday after Reuters suggested it would get unconditional approval.
  • The UK’s Competition and Markets Authority (CMA) approved the deal in June.

Shares of iRobot (IRBT) plunged on Monday after the European Commission raised objections over Amazon’s (AMZN) proposed $1.4 billion purchase of the Roomba vacuum cleaner manufacturer.

The European Commission said it had informed Amazon that the acquisition of iRobot may restrict competition in the market for robot vacuum cleaners (RVCs).

The Commission said that an in-depth investigation launched on July 6 found that Amazon was an "active" retailer of RVCs, which could see other brands take a back seat to iRobot's Roomba offerings.

The Commission said Amazon could impact RVC sales in France, Germany, Italy, and Spain; noting that customers in those countries "rely on Amazon both in terms of product discovery as well as for their final purchasing decision."

The key objection against the deal was Amazon's ability to use foreclosure strategies on other brands, notably through delisting, reduced visibility, and pricing. The e-commerce giant could also use "commercially attractive" labels, such as "Amazon's choice" or "Works With Alexa," the EU regulator said.

iRobot shares lost about 17% of their value on Monday, reversing 澳洲幸运5官方开奖结果体彩网:a rally of 39% on Friday after Reuters reported the deal would get unconditional approval from European regulators. The European Commission has until Feb. 14 to make a final decision on the pro𓆏posed deal.

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