Washington – A US robotic vacuum manufacturer has commenced a bankruptcy proceeding and announced plans to sell itself to a Chinese company a year after U.S. and EU regulators signalled opposition to Amazon’s acquisition of Roomba manufacturer iRobot.
The blocked acquisition led to job losses and the financial decline of a recognized U.S. brand that sought to compete in a sector largely overtaken by Chinese manufacturers.
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 bankruptcy was foreseeable when regulators denied it a financial lifeline that would have saved U.S. jobs and boosted competition with Chinese companies. Unfortunately, this market is now almost entirely foreign-owned – an outcome that regulators should be avoiding, not causing. Policymakers and activists who celebrated when a deal to save iRobot was thwarted have cost American jobs and impaired U.S. standing in home robotics. The takeaway should be a cautionary tale for competition agencies reviewing low-risk mergers. Competition policy should protect competition, not competitors.”
