A few days ago I purchased a robot that vacuums and washes, but if I had known that Amazon would soon purchase iRobot and therefore the Roomba will be Amazon branded, I would have waited. The imminent approval by the European Union of Amazon's acquisition of iRobot marks a significant turning point. This event, awaited for San Valentino, could have substantial impacts on the robot vacuum cleaner market and the smart home device ecosystem.
UPDATE AT THE END OF THE ARTICLE
Amazon will buy iRobot and with this Roomba robots could be cheaper
The news of the probable unconditional approval of Amazon's acquisition of iRobot by the EU, as reported by Reuters, highlights a crucial phase in the strategy of Amazon's expansion into the smart home devices sector. The European Commission's investigation focuses on the effects of this acquisition on competition in the robot vacuum cleaner segment, with particular attention to market dynamics and possible impacts on prices.
In fact, the initial concern was that Amazon's monopoly could expand too much.
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Amazon's interest in smart home devices is well known, and the integration of iRobot robot vacuum cleaners into its ecosystem represents a logical step in this direction. The fame and consolidated quality of iRobot products, especially the model Roomba, combined with Amazon's wide range of smart devices like i doorbells Ring, the speakers and Echo, smart lighting devices and more, could significantly strengthen Amazon's position in the smart home market.
The approval of the acquisition by the UK's antitrust agency, the Competition and Markets Authority, after a preliminary review, it signals a relatively smooth path for Amazon in this acquisition process. However, the question remains open as to price of iRobot Roomba products once under the umbrella of Amazon.
Will he be able to lower the rather high prices of the products? Or will the choice be to maintain this line of top-of-the-range robots while leaving prices intact?
Amazon's ability to make these devices more accessible high quality could represent a change for competitors.
28 / 11 / 2023 UPDATE
Amazon's strategy to acquire iRobot, a company known for its robot vacuum cleaners, recently encountered a stumbling block significant. The European Commission he questioned the operation, raising two serious problems.
The first concern concerns the Amazon's potential to unduly favor iRobot products to the detriment of competitors. This could happen through practices such as excluding or reducing the visibility of competing products on your online store, significantly influencing consumer choices.
Furthermore, the Commission fears that Amazon may leverage user data collected by iRobot robot vacuum cleaners to consolidate its market position. Such data could provide an invaluable competitive advantage, allowing Amazon to better understand consumer habits and preferences, and consequently, to personalize the offer and strengthen its presence on the market.
These concerns have a direct impact not only on competition in the smart vacuum cleaner market, but also on the choices available to consumers in countries such as Italy, France, Germany and Spain, where Amazon is a dominant sales channel. There Commission fears that the acquisition could lead to a decrease in the variety of choice, price increase (contrary to what we assumed) and a reduction in the overall quality of the products available.
Amazon he answered to these concerns, underlining its commitment to working with the European Commission. The company highlighted the intense competition in the vacuum cleaner industry and defended iRobot as an entity that offers innovative and quality products. Amazon argues that the acquisition could lead to greater innovation and lower prices for consumers.
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