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Founder Blames Regulators for iRobot's Collapse
21 Dec
Summary
- iRobot, maker of the Roomba, filed for Chapter 11 bankruptcy last Sunday.
- The company's collapse followed Amazon's scuttled $1.7 billion acquisition.
- Founder Colin Angle cites regulatory opposition as the cause.
iRobot, renowned for its Roomba vacuums, filed for Chapter 11 bankruptcy last Sunday, concluding over three decades of operation. The company's demise was significantly influenced by regulatory opposition, as described by founder Colin Angle. He believes this opposition was "avoidable" and ultimately detrimental to consumers and innovation.
The bankruptcy followed Amazon's decision in January 2025 to abandon its $1.7 billion acquisition of iRobot. This move came after an 18-month-long investigation by the FTC and European regulators. Angle expressed profound frustration with the process, highlighting the immense time and resources, including over 100,000 documents, invested by both iRobot and Amazon to demonstrate the acquisition would not create a monopoly.
Angle argues that regulators misjudged the market, pointing to iRobot's declining market share in both the EU and US, and the presence of numerous dynamic competitors. He feels the lengthy review, which he expected to be brief, had a challenging impact on iRobot's operations and ultimately led to the deal's failure, sending a chilling message to innovators.
