It further added that iRobot possesses a “modest” market position in the UK markets and faces multiple rivals. When the CMA examined the matter closely, it concluded that the merger does not cause competition worries. Here, after a thorough investigation, we’re satisfied that the deal would have no impact on competition in the UK.” 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. “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. Lastly, the CMA was concerned whether the iRobot vacuum cleaners could be an important input for “smart home” platforms and whether by proceeding with the acquisition, Amazon could pose a threat to smart home rivals as well.Ĭolin Raftery, Senior Director of Mergers at the CMA, elaborated on the regulator's decision stating: According to the CMA, Amazon’s online store accounts for the majority of the robot vacuum cleaner sales in the UK, hence, giving the company an upper hand.
The second concern was whether Amazon would put other rivals in the industry at a disadvantage because of the market share its online platform possesses. Also, if the acquisition did not happen, whether Amazon would enter the market and compete in the industry or not. First, the CMA was concerned whether Amazon proceeding with the acquisition could result in the loss of potential competition among robot vacuum cleaner suppliers.
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