The iconic Roomba robot vacuum cleaner manufacturer, iRobot (IRBT), has hit a snag in its planned $1.7 billion acquisition by e-commerce giant Amazon (AMZN). The European Union's antitrust watchdog, the European Commission, is reportedly intending to block the deal, throwing a wrench into iRobot's future and sending its stock plummeting nearly 40% in after-hours trading on Thursday.

• The EU Commission is concerned that the merger could give Amazon an unfair advantage in the smart home device market. By acquiring iRobot, Amazon would control not only a leading brand in robot vacuums but also gain access to valuable data collected by Roomba devices. This data could be used to improve Amazon's own smart home products and services, potentially stifling competition and innovation in the sector.
• While the final decision from the EU Commission is still pending, the potential block casts a shadow of uncertainty over iRobot's future. The company has been struggling financially in recent years, and the Amazon deal was seen as a lifeline. If the merger falls through, iRobot will need to find alternative ways to boost its market share and profitability.
• Interestingly, despite the bad news for iRobot, Amazon's stock hasn't seen much of a reaction. This is likely because the acquisition was relatively small for the tech giant, and analysts believe it wouldn't have a significant impact on its overall business. Additionally, Amazon has a history of facing antitrust scrutiny in Europe, so this setback may be already priced into its stock.

The EU Commission has until February 14th to make a final decision on the merger. If the deal is blocked, it will be a major setback for both iRobot and Amazon's smart home ambitions. However, it could also open up opportunities for other players in the market to compete and innovate. The coming weeks will be crucial for determining the fate of Roomba and the future of the smart home landscape.