Amazon’s Acquisition of iRobot Under European Union Scrutiny: A Potential Cleanup?

American politicians may not be the only ones concerned about Amazon’s acquisition of iRobot. European Union regulators are also raising questions about potential privacy issues related to the deal. The concerns revolve around Roomba robot vacuums capturing imagery and the possibility of Amazon using this data in conjunction with Alexa information for a competitive advantage.

Potential Privacy Issues and Response by iRobot

MIT Technology Review recently uncovered that photos from development versions of Roomba J7 vacuums had been shared in private online groups. iRobot clarified that this technology did not make it to final products and was clearly marked for testers. This incident led to iRobot cutting ties with Scale AI, a startup involved in data labeling for AI training.

Amazon’s Defense Strategy

Amazon is reportedly ready to defend against a potential investigation by emphasizing that production Roombas have basic home mapping capabilities and are not likely to pose privacy risks. The European Commission has been approached for a statement, and Amazon has stated that it is cooperating with regulators. A formal investigation, if launched, is still a few weeks away. However, Amazon is advised to address any initial concerns promptly to avoid a more extensive “phase 2” investigation from the EU.

Broader Implications of the Investigation

This scrutiny from the EU coincides with a broader crackdown on Big Tech companies like Amazon over privacy concerns. While the iRobot deal investigation is not directly related to this crackdown, it highlights the importance of privacy in merger reviews. An update on February 15 at 3:51PM ET revealed that the European Commission has not received formal notification about Amazon’s iRobot transaction and has declined further comment.