Amazon.com has failed to meet the Wednesday deadline set by the European Union to provide remedies for its $1.7 billion acquisition of iRobot, the maker of Roomba. The EU had expressed concerns that the deal could impede competition in the robot vacuum cleaner market.
The European Commission, the executive arm of the EU, raised its concerns in November after conducting a detailed investigation into the deal, which was announced in August 2022. As part of this process, the EU sent Amazon a "statement of objections" to formally convey the objections raised against it.
According to EU merger procedures, companies are typically required to submit remedies by working day 65 of Phase 2 investigations. This phase involves a thorough analysis of the merger's impact on competition. Therefore, Amazon was expected to provide remedies by Wednesday, but no such remedies have been posted on the deal's webpage.
A spokesperson for the European Commission confirmed that the webpage is up to date. Amazon declined to comment on the matter. Following this development, iRobot shares dropped nearly 20%, closing at $29.75.
The commission now has until February 14 to reach a final decision on the acquisition.