Competition watchdog approves Amazon’s £1.3bn takeover of robot-vacuum maker

Amazon’s deal to buy iRobot Corporation will now go ahead.

August Graham
Friday 16 June 2023 11:46 BST
Amazon has won backing for its 1.7 billion dollar takeover of iRobot (Niall Carson/PA)
Amazon has won backing for its 1.7 billion dollar takeover of iRobot (Niall Carson/PA) (PA Wire)

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The competition watchdog has given the thumbs up to digital giant Amazon to buy a major maker of automatic vacuum cleaners.

The 1.7 billion dollar (£1.3 billion) deal between Amazon and iRobot Corporation will now be allowed to go ahead in the UK after the Competition and Market Authority’s ruling.

It had investigated fears that the purchase would worsen competition in the market for robotic vacuum cleaners.

It looked into whether Amazon, without the deal, would have supplied their own robotic vacuums, or if after the deal had gone through it would use its online store to disadvantage iRobot’s competitors.

It said that the former worry is not a big deal because there is already healthy competition in the market. It also dismissed the latter concern as unlikely to materialise because it would not bring major benefits to Amazon.

CMA senior director of mergers, Colin Raftery, said: “More people are choosing to use smart tech in their homes – whether that’s listening to the radio through a smart speaker, answering the door using a video doorbell, or keeping floors clean with robot vacuum cleaners.

“That’s why it’s important to ensure tech firms that already benefit from powerful positions aren’t able to use those positions to undermine competitors at the expense of UK consumers and businesses.

“Here, after a thorough investigation, we’re satisfied that the deal would have no impact on competition in the UK.”

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