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Amazon calls off its $1.7 billion purchase of iRobot amid antitrust challenges

The companies abandoned the deal amid rising global challenges to tech mergers
The companies cited challenges to gaining regulatory approval in the European Union. PHOTO: JUSTIN SULLIVAN/GETTY IMAGES

The companies cited challenges to gaining regulatory approval in the European Union. PHOTO: JUSTIN SULLIVAN/GETTY IMAGES

Amazon and Roomba-maker iRobot announced Monday morning they would scrap their planned $1.7 billion acquisition, after the European Commission said the deal would restrict competition in robot vacuums.

The companies abandoned the deal amid rising legal challenges to tech mergers, as regulators around the world raise concerns about the ways large tech companies have built their dominance by buying up smaller competitors.

“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon senior vice president and general counsel. “Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see an acquisition as one path to success, and that hurts both consumers and competition — the very things that regulators say they’re trying to protect.”

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Author: Editors Desk

Source: The Washington Post

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