A U.S. robotic vacuum manufacturer is facing financial difficulties, with its stock declining following the announcement that it may soon go out of business. This development comes after the Federal Trade Commission (FTC) opposed a proposed acquisition deal between Amazon and iRobot, the maker of Roomba, last year. The failed acquisition has resulted in job losses and a weakening position for iRobot as it competes against predominantly Chinese manufacturers in the robotic vacuum sector.
The Computer & Communications Industry Association (CCIA), which has been promoting innovation and competition in the tech industry since 1972, expressed concerns about the situation. According to CCIA President & CEO Matt Schruers: “This news of iRobot’s potential demise is unfortunately not surprising. This result should serve as a cautionary tale for the incoming FTC that efforts to block low-risk mergers will mean US job losses and companies like iRobot being sold for scrap – possibly to Chinese competitors. Competition policy should benefit competition – not competitors.”
Schruers' statement highlights fears that blocking such acquisitions could lead to further American job losses and an increased market share for Chinese companies.
