In a significant development, Amazon (NASDAQ:AMZN) is poised to receive unconditional approval from the European Union for its proposed acquisition of iRobot Corp, the maker of the popular Roomba robot vacuum.
This move comes amid heightened global scrutiny of big tech firms acquiring smaller competitors.
Sources familiar with the matter revealed to Reuters that the US$1.4 billion deal is expected to pass the scrutiny of the European Commission, the EU's competition watchdog.
The Commission has been vigilant about such acquisitions, especially concerning the potential accumulation of data and market dominance by leading tech companies.
In July, the Commission had expressed concern that Amazon's acquisition could stifle competition in the robot vacuum cleaner market and reinforce Amazon's already dominant position as an online marketplace provider.
Despite these concerns, the European Commission, slated to make a decision by February 14, has not yet commented on the matter. Amazon has also not responded to requests for comment.
Ongoing expansion of smart home market
The acquisition, announced in August, would enhance Amazon's portfolio of smart devices, which already includes the Alexa voice assistant, smart thermostats, security devices and wall-mounted smart displays.
This strategic move by Amazon reflects its ongoing expansion in the smart home device market.
Interestingly, the UK antitrust agency has already cleared the deal unconditionally after a preliminary review, setting a precedent for a potentially smooth approval process in the EU.
This development is closely watched by market analysts and could have significant implications for the tech industry and its competitive landscape.