The following statement can be attributed to Morten Skroejer, Senior Director, Technology Competition Policy, Software & Information Industry Association.
Last night, the Wall Street Journal reported that the European Commission intends to block Amazon’s acquisition of iRobot, the maker of the Roomba vacuum. According to the report, the Commission is concerned that the merger “could restrict competition in the market for robot vacuum cleaners.”
If the reporting is accurate, the Commission’s decision continues the regrettable trend of competition authorities in Europe and the United States blocking, or attempting to block, pro-competition and pro-consumer deals.
We are deeply concerned by the way that the Commission is applying its competition principles, which has implications well beyond the context of this particular case. Here, Amazon does not own a competing brand of robot vacuum cleaners. Rather, the point of the deal was to provide iRobot a much needed capital infusion to allow it to better compete with its closest competitors. This rubric could be applied to block almost any kind of productive activity across the business of information.
The Commission’s decision to block the merger is bad for innovation, small businesses, and, ultimately, consumers, who will have fewer products and services to choose from.
