At a meeting with European Commission officials on Thursday, the e-commerce behemoth was informed that the transaction would probably be denied, according to sources familiar with the situation. The political leadership of the EU must still formally approve a final decision, which is required by February 14. Meanwhile, Amazon declined to comment on the issue.
On Friday, iRobot’s shares, based in Bedford, Massachusetts, fell as much as 31% to $16.30, expanding the deal spread to over $35, the greatest since the merger was disclosed more than a year ago.
Regulators believe that other vacuum manufacturers may find it more difficult to compete as a result of iRobot’s partnership with Amazon, particularly if Amazon decides to give Roomba advantages over competitors on its online store.
There will probably be opposition to the deal in the US as well. People with an insight into the situation claim that the Federal Trade Commission has been preparing a lawsuit to try and stop the transaction. According to persons speaking about an ongoing investigation, the three FTC commissioners have yet to vote on a challenge or hold a final meeting with Amazon to discuss the possible case.
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