Amazon Cancels the Acquisition of iRobot, the Maker of Roomba Robot Vacuums

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Amazon will not acquire iRobot. Although the company had intended to acquire the manufacturer of, among other things, Roomba robot vacuums, it has now decided against the acquisition.

European Commission Investigation

Amazon and iRobot announced the deal they had in mind in 2022. However, this immediately raised many questions: last year, the European Commission initiated a major investigation into the acquisition, which would involve approximately 1.3 billion euros.

With the addition of robot vacuums, Amazon would have too much power in the smart home industry. Amazon already owns smart home camera manufacturer Ring and is the company behind Alexa, known for smart speakers.

‘Discouragement of Entrepreneurs'

With the decision, Amazon is preempting the outcome of the European Commission. The European Commission was expected to make a final decision next month.

In a press release, David Zapolsky, Amazon's lawyer, talks about ‘discouragement of entrepreneurs through excessive and disproportionate regulatory obstacles.'

Significant Consequences for iRobot

The failed acquisition has significant consequences for iRobot. Although Amazon will pay a compensation of $94 million to the manufacturer of robot vacuums and mopping robots, a major restructuring is taking place. 350 employees will be laid off, representing over 30% of the workforce. CEO Colin Angel is also resigning.

Robbert Tigchelaar
Robbert Tigchelaar

Robbert Tigchelaar has made testing vacuum cleaners his life's work. He has dedicated himself to conducting fully independent and valuable tests of vacuum cleaners to provide consumers with honest advice. His expertise in vacuum cleaners has been highlighted in The Washington Post and the Daily Express.

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