CMA clears Amazon’s acquisition of iRobot

The CMA has cleared Amazon’s $1.7bn (£1.3bn) purchase of iRobot, as the authority considered areas of potential concern, after the online giant announced its proposed acquisition of the Roomba maker in August 2022. 

The CMA was concerned whether Amazon could enter to compete as a supplier of robot vacuum cleaners if the merger did not go ahead, and whether this loss of potential competition – as a result of the merger – would be substantial.

It also questioned whether the retailer could use its online store, which already accounts for the majority of sales of robot vacuum cleaners in the UK, to disadvantage rivals following the merger.

In addition, the authority was worried that Amazon could disadvantage smart home rivals following the merger.

The CMA has now concluded that the deal would not lead to competition concerns in the UK, as it has found that it already faces several significant rivals in the robot vacuum cleaner manufacturers market.  

According to the CMA, the retailer also “lacks the incentive” to disadvantage other manufacturers, as the benefits of such a strategy “would be limited”.

Colin Raftery, senior director of mergers at the CMA, 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.”

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