Amazon abandons 1.4 billion iRobot acquisition after EU veto threat

Amazon and iRobot, maker of the Roomba vacuum line, just announced that they would be dropping their proposed merger. The potential acquisition was announced back in August of 2022 and was immediately the target of antitrust watchdogs, particularly in the EU. The European Commission (the EU's executive branch) officially announced it was looking into the 1.4 billion dollar deal last July and it raised formal concerns over the potential impact on competition in November. The company says it is laying off about 350 employees, which represents 31 percent of iRobot's workforce. Colin Angle, founder, chairman of the iRobot board of directors and CEO is also stepping down as chairman and CEO, effective today. While the companies didn't mention the pressure from the EU specifically, Bloomberg notes that a veto looked likely.