The European Union Government Warns Amazon's Acquisition Of IRobots

IRobot, a manufacturer of automated dust suction robots, (photo: twitter @iRobot)

JAKARTA - On Thursday 6 July, EU antitrust regulator issued a warning regarding the acquisition of the iRobot, a manufacturer of automated dust suction robots, by Amazon worth 1.7 billion US dollars (IDR 25.6 trillion). The European Union government is concerned that this acquisition could reduce competition and strengthen Amazon's position as an online market provider.

The European Commission opened a thorough investigation and will decide on November 15, whether they will approve or block this transaction.

"We continue to work closely with the European Commission and focus on answering the questions and concerns identified at this stage", an Amazon spokesperson told Reuters.

Law enforcement antitrust around the world is now increasingly tightening scrutiny of major technology companies that acquire small competitors. They are concerned about the accumulation of data by several large companies and companies that take advantage of their dominance in the new market.

The acquisition, announced in August last year, will add an iRobot-made Roomba dust suction robot to Amazon's smart device portfolio, which includes voice assistant Alexa, smart thermostat, security device, and smart screen mounted on the wall.

IRobot first released the Roomba dust suction robot in 2002. Amazon previously said that the dust suction market is a very competitive market, with many Chinese companies involved.

"The European Commission is concerned that this transaction will allow Amazon to limit competition in the automated vacuum cleaner market and strengthen its position as a provider in the online market", the EU executive said.

"The Commission has been working closely with other competition authorities during the initial investigation and will continue to work together during this thorough investigation... the opening of this in-depth investigation does not lead to the conclusion of the investigation", he explained.

Amazon's spokesman also said the company could "add resources to companies like iRobot to accelerate innovation and invest in essential features while lowering prices for consumers."

The European Union's antitrust law enforcement decision confirmed the news reported by Reuters last month and emerged a month after Britain's antitrust agency allowed this transaction unconditionally after an initial review.