(Reuters) – The European Union’s competition watchdog plans to block Amazon.com Inc’s $1.4 billion acquisition of robot vacuum cleaner maker iRobot, the Wall Street Journal said on Thursday, citing people familiar with the matter.
Shares of the Roomba vacuum maker fell more than 36% in premarket trading on Friday.
The Wall Street Journal reported that Amazon was informed during its meeting with European Commission officials on Thursday that the deal might be rejected.
Amazon declined to comment on the report.
The US tech giant did not provide solutions until a January 10 deadline to address the antitrust watchdog’s concerns that the deal could restrict competition in the robotic vacuum cleaner market, according to an update on the European Commission’s website.
“If the goal is to increase competition in the home robotics sector, it doesn’t make sense,” said Matt Schruers, president of the technology lobby group Computer and Communications Industry Association.
“Blocking this deal could leave consumers with fewer options, and regulators cannot sweep this fact under the rug,” Schruers added.
The e-commerce giant revealed its plans to acquire iRobot in August 2022, as it looks to add to its portfolio of smart devices, which includes the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.
The European Commission, which acts as the EU’s competition watchdog, has until February 14 to approve or reject the deal.
(Reporting by Harshita Mary Varghese and Chhavi Mehta in Bengaluru; Fu Yun Che in Brussels)