Washington – A US robotic vacuum manufacturer’s stock is dropping after announcing it may indeed go out of business. This comes after the Federal Trade Commission signalled opposition to a deal last year between Amazon and Roomba manufacturer iRobot. This failed acquisition led to job losses and the decline of a company that sought to compete with mostly Chinese manufacturers of robotic vacuum cleaners.
While there was no plausible risk to competition from a U.S. retailer acquiring a struggling U.S. vacuum maker in a sector overtaken by dynamic Chinese manufacturers, the abandonment of this deal resulted in a loss of American jobs and further ground being conceded in the market to Chinese companies.
The Computer & Communications Industry Association has advocated for innovation and a competitive tech industry since 1972.
The following can be attributed 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.”
