Following the recent announcement that Amazon and iRobot have terminated their $1.4 billion merger agreement, Nathan Soderstrom, associate director of merger analysis at the Federal Trade Commission (FTC), issued a statement stating that Biden regulations The authorities expressed their pleasure at the disbandment.
“We are pleased that Amazon and iRobot have abandoned the proposed transaction…The European Commission's investigation has revealed serious concerns about the potential competitive effects of the transaction,” Soderström said. Stated. Said in a statement.
Statement regarding cancellation of Amazon's plans to acquire iRobot: https://t.co/njnwKHOS7P
— FTC (@FTC) February 1, 2024
U.S. members of Congress, including Massachusetts Sen. Elizabeth Warren, previously called In a joint letter, they asked the FTC to block the merger.
“Given iRobot is a strong market incumbent, its vast resources, history of manufacturing smart vacuum cleaners… and its strong platform, Amazon is a very important 'potential entrant' to the market. Amazon’s ability to acquire iRobot would significantly reduce competition,” the lawmakers wrote. (Related article: Biden administration launches investigation into large investments in pioneering technology startups)
In a press release, the companies cited the FTC's opposition to the European Union and said, “Amazon's proposed acquisition of iRobot has no path to regulatory approval in the European Union.” . [EU] It prevents Amazon and iRobot from moving forward together, which is a loss for consumers, competition, and innovation. ” iRobot, which mainly manufactures vacuum cleaners, disclosed As a result of the merger being blocked, the company was forced to lay off approximately 350 employees (31% of its workforce).
on Amazon on Monday answered To dissolve the merger.
“We are disappointed that Amazon's acquisition of iRobot did not move forward,” said David Zapolsky, Amazon's senior vice president and general counsel. “Unfair and disproportionate regulatory hurdles discourage entrepreneurs from considering acquisitions as a path to success, and harm both consumers and competition, the very thing regulators are trying to protect. It is what it is.”
