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European Commission Sends Statement of Objections to Amazon

According to the press release published by the European Commission (“Commission”) on its official website on 27 November 2023, the Commission notified Amazon of its preliminary view that its proposed acquisition of iRobot may restrict competition in the market for robot vacuum cleaners ('RVCs').

Amazon is a US-based multinational corporation. It provides an online marketplace that allows retailers to advertise and sell products (including RVCs) to customers, iRobot is a US-based manufacturer of robot vacuum cleaners, which iRobot also sells on Amazon's online marketplace.

According to the Statement of Objection;

  • On 6 July 2023, the Commission launched an investigation to assess whether Amazon's acquisition of iRobot restricts competition in the market for the manufacture and supply of RVCs and strengthens Amazon's online marketplace services for third-party sellers and/or its position in other data-related markets.
  • As a result of the investigation, the Commission considers that Amazon may restrict competition in the European Economic Area ("EEA") and/or national RVC markets by preventing it from competing effectively with rival RVC suppliers.

The Commission made the following important conclusions;

  • Amazon may put iRobot's competitors in a difficult position by implementing various blocking strategies aimed at preventing competitors from selling RVCs on Amazon's online marketplace and/or reducing their access to that marketplace, such as delisting competing RVCs, limiting access to certain widgets or certain commercially attractive product labels.
  • Amazon could challenge iRobot's competitors, as Amazon's online marketplace is an important channel for selling RVCs in France, Germany, Italy, and Spain.
  • Amazon may have an incentive to drive out iRobot's competitors.
  • Foreclosure strategies can restrict competition in the RVC market, leading to higher prices, lower quality, and less innovation for consumers.

The transaction was notified to the Commission on 1 June 2023. The Commission launched an in-depth investigation on 6 July 2023 and has until 14 February 2024 to issue its final decision.

For more information, you can access the press release here.

Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr