Amazon Acquires Consumer Robot Company as UK Regulators Give Nod
Key Highlights :
The UK’s antitrust regulator has given the green light to Amazon’s proposed $1.7 billion acquisition of iRobot, a company that designs and builds consumer robots, including robot vacuum cleaners sold under the ‘Roomba’ brand. The Competition and Markets Authority (CMA) found that iRobot’s market position in the supply of robot vacuum cleaners in the UK is modest and that it already faces several significant rivals.
The acquisition of iRobot would not disadvantage Amazon’s rival ‘smart home’ platforms. This is primarily because robot vacuum cleaners (and the data that they gather) are generally not considered to be an important input to the emerging “smart home” market in the UK, according to the CMA. The CMA also found that there are, in any case, several alternative robot vacuum cleaners with similar capabilities to iRobot that could form part of rival “smart home” offerings.
“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,” said Colin Raftery, Senior Director of Mergers at the CMA. “Here, after a thorough investigation, we’re satisfied that the deal would have no impact on competition in the UK,” the CMA added.
The approval of the acquisition of iRobot by Amazon marks a significant milestone in the development of consumer robots. This is because Amazon is one of the world’s largest retailers and its acquisition of iRobot will give it access to a large customer base. Moreover, Amazon’s resources and technology will enable iRobot to expand its product offerings and develop new technologies.
iRobot is best known for its Roomba robotic vacuum cleaners, but it has also developed other products such as lawn mowers, pool cleaners, and gutter cleaners. With Amazon’s backing, iRobot is expected to expand its product line and develop new technologies to make its robots smarter and more efficient.
The acquisition of iRobot by Amazon is a major step forward for the development of consumer robots and the “smart home” market. With Amazon’s resources and technology, iRobot will be able to reach a larger customer base and develop new technologies that will make its robots smarter and more efficient. This is an exciting development for the consumer robotics industry and one that will have a positive impact on the “smart home” market.
