Neither Amazon nor iRobot are very happy
Amazon’s bid to buy leading robot vacuum maker iRobot has collapsed from EU regulatory pressure, forcing the Roomba maker to make major cuts to its R&D spend and workforce. And that could have big repercussions for home robotics in the future.
The proposed $1.7 billion acquisition was first announced back in August 2022, but in November 2023 the European Commission revealed its objections to the deal in a press release that warned the move « may restrict competition in the market for robot vacuum cleaners ».
Well, those objections have now toppled the takeover, with Amazon and iRobot releasing a joint statement that expresses their disappointment in no uncertain terms. Amazon, in particular, is furious with the EU regulators, stating that « undue and disproportionate regulatory hurdles discourage entrepreneurs » and « hurts both consumers and competition ».
While iRobot’s rivals in the race to build the best robot vacuum might disagree with that, the knock-on effects for the Roomba maker appear to be significant. In a separate release, iRobot laid out how it plans to survive as a standalone company, including cutting R&D spending by $20m per year and cutting over 30% of its workforce.
