Plans to merge Amazon and vacuum cleaner maker iRobot have been abandoned, after concerns the move would hurt competition.
The $1.4 billion (£1.1 billion) deal, which was first announced in August 2022, has been approved by UK regulators.
But in November, the European Commission expressed concerns that the online retailer might give iRobot products preferential treatment on its website — ahead of rival vacuum companies — if the merger went ahead.
Amazon The Commission confirmed on Monday that the agreement has now collapsed after it failed to find a way forward with EU officials during the talks.
The merger was also facing scrutiny from US regulators. A source told Reuters news agency following Monday's announcement that the FTC is “prepared” to reject the deal.
“We are disappointed that Amazon's acquisition of iRobot cannot move forward,” said David Zapolsky, Amazon vice president.
“We believe in the future of consumer robotics in the home and have always been fans of iRobot products.”
He added: “This result will deprive consumers of faster innovation and more competitive prices, and we are confident that it will make their lives easier and more enjoyable.”
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Amazon, which already has “smart” products like Alexa and Ring, has been looking to expand its range of home technology devices.
The collapse of the deal represents a major setback for iRobot, which is best known for its Roomba range of circular vacuums.
It announced a restructuring plan to cut costs, including cutting 350 jobs, while company founder Colin Angell also said he would step down as its CEO.
Mr. Angell said he and the board “mutually decided that iRobot would be better served by a new leader with transformation experience.”
However, Amazon will still pay the company a previously agreed termination fee of $94m (£74m).
In its decision to approve the deal last June, the United Kingdom said Competition and Markets Authority He said the market for robotic vacuum cleaners in Britain was “small”, with demand “significantly” below levels seen in parts of mainland Europe and the US.
The regulator said that although Amazon had the ability to harm iRobot's competitors via its website, it did not have the incentive to do so.
