The far-reaching power of Amazon sales reached into the I Robot Vaccuum maker’s business, causing it to slash its staff numbers by 31 percent. This follows a terminated deal by Amazon that would have acquired IRobot for $1.7 billion in cash.
Toronto Sun reports the proposed deal value fell 15% after IRobot incurred new debt. Then, the European Union put some braking on the deal citing concerns about industry competition, and specifically, Amazon’s tagging of some products, possibly to include IRobot products with a logo stating “Amazon’s Choice”, which usually offers a price or other inducement to potential buyers.
The European Union wasn’t expected to issue a final ruling until mid-February, 2024.