For the EU, Amazon could have the ability and incentive to foreclose iRobot's rivals by facilitating the subsidiary's sales on its online store
Perhaps someone will remember that, in the summer of 2022, the Seattle e-commerce giant added another smart home device to its cart by purchasing the iRobot company, best known for its Roombla robot vacuum cleaners, for $1.7 billion . In a statement , Amazon announced its intention to pay 61 dollars for each share of iRobot.
AMAZON ASPIRATES IROBOT, THE EU DOUBTS
“The European Commission has informed Amazon of its preliminary opinion according to which its proposed acquisition of iRobot could limit competition in the market for robot vacuum cleaners,” however, they say from Brussels.
AMAZON IS A MANUFACTURER, BUT ALSO A STORE
“Amazon provides an online marketplace that allows retailers to advertise and sell products (including RVCs) to customers. Amazon is active as a reseller of various products (including RVCs) on its online marketplace. iRobot produces RVCs and also sells them through Amazon's online marketplace." The de facto situation underlying the doubts expressed by the EU Commission.
WHAT RISKS FOR COMPETITION?
According to the European executive “Amazon may have the ability and incentive to foreclose iRobot's rivals by implementing various foreclosure strategies aimed at preventing rivals from selling RVC on Amazon's online marketplace and/or reducing their access to it market".
Brussels' doubts coagulate around the possibility that the US giant "might be able to exclude iRobot's rivals because Amazon's online market is a particularly important channel for the sale of RVC in France, Germany, Italy and Spain". Furthermore, Amazon "may have an incentive to foreclose on rivals because it may be economically advantageous to do so."
AMAZON'S REPLY TO THE EU
“We continue to work with the European Commission and are focused on responding to its questions and any concerns identified at this stage. iRobot, which faces intense competition from other vacuum cleaner suppliers, offers practical and inventive products. We believe Amazon can give a company like iRobot the resources it needs to accelerate innovation and invest in essential features, while reducing prices for consumers.” The response has so far been received through an Amazon spokesperson.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/la-commissione-ue-aspira-amazon-lacquisizione-di-irobot-limita-la-concorrenza/ on Tue, 28 Nov 2023 15:42:37 +0000.