The European Union’s antitrust regulator plans to oppose Amazon’s acquisition of iRobot, as reported by The Wall Street Journal.

The European Union’s competition watchdog is set to reject Amazon.com’s $1.4 billion acquisition of iRobot, the robot vacuum maker, according to sources cited by The Wall Street Journal on Thursday. Following a meeting with European Commission officials, Amazon was reportedly informed that the deal faced likely rejection, prompting a nearly 40% drop in shares for the Roomba vacuum maker, closing at $14.3.

The rejection stems from the tech giant’s failure to provide remedies by the January 10 deadline, addressing concerns raised by the antitrust regulator regarding potential market competition restrictions in the robot vacuum cleaners sector. The European Commission, responsible for overseeing competition within the EU, had until February 14 to make a final decision on approving or rejecting the proposed acquisition.

Matt Schruers, president of the tech lobbying group Computer and Communications Industry Association, criticized the potential rejection, stating, “If the objective is to have more competition in the home robotics sector, this makes no sense.” Schruers argued that blocking the deal might limit consumer options and emphasized the importance of regulators acknowledging this impact.

Amazon had announced its intention to acquire iRobot in August 2022, seeking to expand its range of smart devices, including the Alexa voice assistant, smart thermostats, security devices, and wall-mounted smart displays. The fallout from the European Commission’s anticipated rejection reflects concerns over the potential implications for competition in the burgeoning smart home technology market.