• EU antitrust regulators are considering vetoing Amazon’s $1.4 billion acquisition.
• Amazon’s decision not to address the warnings from the European Commission.
• A potential veto could set a precedent for future Amazon acquisitions.

European Union (EU) antitrust regulators are contemplating a veto on Amazon’s proposed $1.4 billion acquisition of iRobot, a prominent robot vacuum maker, according to sources familiar with the matter. The move comes as part of an increased focus on scrutinizing major deals involving Big Tech companies.

Despite a warning from the European Commission about potential competition restrictions in the robot vacuum cleaner market, Amazon declined to offer remedies to address these concerns. The Commission, set to make a decision on the deal by February 14, has expressed worries that Amazon could impede iRobot’s rivals on its online marketplace, particularly in France, Germany, Italy, and Spain.

The regulator’s primary concerns center around the possibility of Amazon stifling competition in the market. Although the newly enforced EU tech rules under the Digital Markets Act could address some of these issues, the Commission believes that the protracted enforcement process and the absence of legal challenges to the new legislation make it more prudent to block the deal at this stage.

Both the European Commission and Amazon have refrained from providing official comments on the matter. If the EU decides to veto the acquisition, it would set a significant precedent, raising the bar for future Amazon acquisitions involving online rivals. EU antitrust enforcers would likely demand substantial remedies in exchange for approval, underscoring the growing regulatory scrutiny faced by major tech players in the European market.

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