CMA to investigate Amazon’s $1.7bn takeover of Roomba firm

theguardian.com:

Amazon’s $1.7bn takeover of the owner of the Roomba robotic vacuum cleaner is being examined by the UK’s competition watchdog.

The Competition and Markets Authority (CMA) has called for evidence on whether the deal could lead to “a substantial lessening of competition within any market or markets in the United Kingdom for goods or services” and so would require a full investigation.

Amazon announced the deal to buy Massachusetts-based iRobot, which sells its products worldwide including the UK, last summer. Its gadgets include the £799 Roomba i7, a wifi-connected vacuum cleaner that it claims maps and learns rooms and empties itself when full.

The deal is part of the online retailer’s aim to offer more home services alongside the voice-prompted Alexa online assistant and linked smart speakers, the Astro robot, which allows people to check on their homes remotely, and Ring doorbell security cameras.

Antitrust groups have warned Amazon’s acquisition of iRobot could give it dominance in the “smart home market” – where home appliances and services can be controlled digitally – and give the business unprecedented access into consumers’ lives.

The US Federal Trade Commission is already probing the deal and last month the European Commission was reported to have sent detailed questions to Amazon ahead of a potential formal investigation.

Foxglove Legal, the UK-based tech watchdog group that has taken on Facebook and Palantir, wrote to the CMA saying it had “grave concerns that the proposed merger is yet another example of Amazon’s habit of ‘snuffing out’ innovative entry and broader competition in existing and emerging markets”.

“Amazon already spies on our doorsteps and listens in on our dinner conversations – hoovering up iRobot