The EU has opened an investigation into Amazon's iRobot acquisition

The acquisition, if it goes through, would give Amazon a competitive edge in the consumer home appliances market. (Representational Image)

The European Union (EU) has opened a full-scale investigation of Amazon's proposed $1.7 billion acquisition of consumer robots company, iRobot.

As reported by Reuters, the EU will decided by November 15, 2023 whether to block or let the deal go through. The antitrust watchdog is worried that the deal will reduce competition, and give Amazon a major presence in the space.

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An Amazon spokesperson said the company will "work through the process with the European Union and are focused on addressing its questions and any identified concerns at this stage".

The acquisition, if it goes through, would give Amazon a competitive edge in the consumer home appliances market, with iRobot's robotic vacuum cleaners joining the portfolio of other smart devices such as smart thermostats and wall-mounted display hubs.

"The Commission is concerned that the transaction would allow Amazon to restrict competition in the market for robot vacuum cleaners and to strengthen its position as online marketplace provider, " an EU executive told Reuters.

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The executive also said that they will closely cooperate with other competition in the market "during the initial investigation and will continue such cooperation during the in-depth investigation".

Amazon has argued that its acquisition of iRobot allows the company to, "accelerate innovation and invest in critical features while lowering prices for consumers."