Shares of iRobot Corporation (NASDAQ:IRBT) fell more than 19% Wednesday after Amazon refused to offer any concessions to the European Commission to clear the way for its planned $1.7 billion acquisition of the Roomba manufacturer, according to a report from Politico.
EU regulators have argued that if Amazon acquired iRobot, it could in turn harm its competitors by reducing their prominence on its ecommerce site. Amazon and iRobot have until the end of the day Wednesday to make an offer to address these concerns, according to reports.
In November, the Commission also argued that Amazon could generate more profits from selling iRobot models if it owned the company than it could selling competitors’ models, which could lead to “higher prices, lower quality and less innovation for customers,” the Commission said.
The European Union has until February 14 to approve the deal without conditions or veto it.
The Roomba maker "continues to work cooperatively with the [European Commission] and other regulators in their review of the merger,” iRobot CEO Colin Angle said in a statement.
“We remain excited about the opportunity to work together with Amazon to continue innovating, bringing valuable products to customers and making their lives easier.”
Elsewhere, the United Kingdom has approved the deal, while the US Federal Trade Commission is also investigating it, according to reports.