Technology company iRobot is undergoing major layoffs after the Federal Trade Commission (FTC) and European regulators opposed its acquisition by Amazon on Monday, multiple outlets reported.
Amazon had planned to acquire iRobot, which is most known for making robot vacuums, but the deal could not go through because of regulatory hurdles, according to a press release announcing the termination. iRobot immediately disclosed impending layoffs affecting about 350 employees, constituting 31% of its total workforce, after the termination announcement. (RELATED: Org That Defunds Conservatives Tries To Sic Biden FTC On Elon Musk’s X)
The companies primarily attributed the dissolution of the deal to the European Union (EU), stating in the press release that “Amazon’s proposed acquisition of iRobot has no path to regulatory approval in the [EU] preventing Amazon and iRobot from moving forward together—a loss for consumers, competition, and innovation.”
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Amazon abandons $1.4B deal to buy iRobot as it sees “no path to regulatory approval”
Something is very broken in antitrust enforcement
— Matt Turck (@mattturck) January 29, 2024
European Commission Executive Vice-President Margrethe Vestager noted the EU has “been in close contact with the US Federal Trade Commission” during its investigation on the potential consequences of the merger in a Monday statement following the termination.
The FTC notified Amazon of its intent to contest the merger, according to The Washington Post and The Wall Street Journal.
Amazon had a meeting slated with FTC commissioners this week, which could have been its final opportunity to advocate for the deal before a lawsuit, according to the Post. Amazon had received a warning about potential forthcoming FTC litigation the previous week, according to the WSJ.
“The calling off of this deal because of the actions European regulators are taking demonstrably leave Americans worse off, with iRobot laying off 31% of its employees and the CEO stepping down,” James Czerniawski, senior policy analyst at Americans for Prosperity, told the Daily Caller News Foundation. “This deal represented no legitimate competition concerns, and it is well beyond time for this administration to challenge the EU for its blatant targeting of American firms.”
iRobot declined to comment, pointing the DCNF to the press releases and flagging an upcoming earnings call on Feb. 27.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” Amazon Senior Vice President and General Counsel David Zapolsky said in the press release. “Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition—the very things that regulators say they’re trying to protect.”
The FTC did not immediately respond to the DCNF’s request for comment.
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