The European Union is expected to launch an investigation into Amazon.com Inc.’s planned acquisition of iRobot Corp. for $1.7 billion.

The development was reported this morning by Bloomberg and Reuters. According to the sources cited in the reports, EU antitrust officials are currently conducting a preliminary review of the deal. The full investigation is expected to begin after the review concludes.

Bedford, Massachusetts-based iRobot develops the popular Roomba line of robot vacuums. The company launched the product series in 2002 and went public three years later. Since then, it has sold more than 40 million robot vacuums worldwide. 

Along the way, iRobot expanded its focus to other parts of the consumer electronics market. The company launched a line of robot mops under the Braava brand in 2016. It also offers handheld vacuums and air purifiers.

Last August, Amazon announced plans to acquire iRobot for $1.7 billion. The deal could help the company expand its presence in the smart home market, where it already competes with the Ring device series and certain other products. Amazon obtained the Ring product portfolio through an earlier acquisition that closed in 2018. 

Today’s reports didn’t specify what aspects of the iRobot deal are facing scrutiny in the EU. It’s possible officials are concerned about the deal’s potential impact on competing robot vacuum makers. That was a focus of an investigation the U.K.’s Competition and Markets Authority, or CMA, launched into the deal earlier this year.

The regulator explored the question of whether Amazon would have launched its own robot vacuums if the iRobot acquisition hadn’t been inked. Such a situation, officials speculated, may have led to increased market competition. The CMA eventually determined that the matter didn’t pose an antitrust concern.

The probe also focused on two other areas. The CMA evaluated whether iRobot’s technology might give Amazon an unfair edge in the smart home market. Additionally, officials were concerned the online retail giant could use its e-commerce marketplace to harm rival robot vacuum makers.

The CMA published its findings last week. Officials decided to greenlight the acquisition after determining the acquisition won’t substantially affect market competition in the U.K.

The EU’s preliminary review of the deal is expected to end on June 6, according to today’s reports. During a preliminary antitrust review, the company facing scrutiny can theoretically convince regulators that there’s no risk to market competition. However, sources told Reuters that “the odds against it are high” in the case of Amazon.

Companies can also offer remedies in a bid to stave off an antitrust investigation. Remedies often take the form of changes to business practices that are deemed anticompetitive by regulators. According to Reuters’ sources, Amazon is unlikely to take such a step “during this initial phase.”

The EU’s antitrust investigation is expected to take four months. Previously, it was reported in September that U.S. Federal Trade Commission has also launched a probe of the deal. The FTC investigation could reportedly take up to a year.

Image: iRobot