The European Union’s competitors watchdog plans to dam Amazon’s $1.7 billion deal for robotic vacuum maker iRobot, The Wall Road Journal reported Thursday, citing folks accustomed to the matter.
Shares of the Roomba vacuum maker plunged 40% to $14 after the bell.
Officers from the European Fee met Amazon’s representatives on Thursday to debate the deal, the report stated.
The tech big didn’t supply treatments to the European Union antitrust regulator till the Jan. 10 deadline to deal with considerations the deal may scale back competitors and reinforce Amazon’s e-commerce platform dominance.
The WSJ reported that Amazon was knowledgeable throughout the assembly that the deal was more likely to be rejected.
Amazon declined to touch upon the report.
“If the target is to have extra competitors within the residence robotics sector, this is mindless,” stated Matt Schruers, president of tech lobbying group Laptop and Communications Business Affiliation.
“Blocking this deal could nicely depart customers with fewer choices, and regulators can’t sweep that truth below the rug,” Schruers added.
The e-commerce big disclosed its plans to purchase iRobot in August 2022, because it appears to be like to add to its portfolio of good gadgets, which embody the Alexa voice assistant, good thermostats, safety gadgets and wall-mounted good shows.
The European Fee, which serves because the EU’s competitors watchdog, had till Feb. 14 to both approve or reject the deal.