The Boston Globe

EU regulators say Amazon purchase of iRobot may harm competitio­n

- By Haleluya Hadero

European regulators said Monday that Amazon’s proposed acquisitio­n of robot vacuum maker iRobot may harm competitio­n.

The European Commission, the European Union’s executive arm and top antitrust enforcer, said it has informed Amazon of its “preliminar­y view” regarding the deal following an investigat­ion that began in July.

The news raised investors’ concerns about the acquisitio­n, sending shares in Bedford-based iRobot Corp., most famous for the circular-shaped Roomba vacuum, down more than 17 percent Monday.

The European regulators raised concerns that the buyout may hinder iRobot’s rivals from effectivel­y competing on Amazon’s marketplac­e, which they said is an important platform for sales of robot vacuum cleaners in France, Germany, Italy, and Spain.

If the deal goes through, the commission said Amazon may be incentiviz­ed to prevent competitor­s from selling their products on its marketplac­e or making it difficult for them to do so.

Among other things, it said Amazon could reduce the visibility of a competitor’s product on its marketplac­e or limit access to certain labels, such as “Amazon’s choice,” that may attract more shoppers. It may also find ways to raise the costs of iRobot’s rivals to advertise and sell their products on its platform, the commission said.

The commission has until Feb. 14 to make a final decision on the deal. And Amazon may respond to some of the objections raised.

Alexandra Miller, an Amazon spokespers­on, said the Seattlebas­ed company is working with the commission and is focused on addressing its questions.

“We believe Amazon can offer a company like iRobot the resources to accelerate innovation and invest in critical features while lowering prices for consumers,” Miller said.

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