iRobot ticks lower on report EU set for for probe of Amazon planned takeover (update)
Justin Sullivan

Update 11:40am: Updates shares, adds Amazon comment.
Robot (NASDAQ:IRBT) ticked down 0.4% on a report that Europe's antitrust regulator is likely to start a formal probe into Amazon's (NASDAQ:AMZN) planned takeover of the Roomba vacuum maker.
The EU regulator has sent Amazon (AMZN) a series of questions about the $1.7 billion deal, an indication that the antitrust authority is readying a formal probe of the transaction, according to a FT report, which cites people with direct knowledge of the decision. The European Commission is said to be focused on privacy concerns around the deal. 
Amazon (AMZN) is likely to argue to EU regulators that the Roomba has restrictions built into it and that it only has basic sensor mapping, which is unlikely to violate privacy concerns, according to the FT. 
It's expected to take weeks for the EU regulator to open an initial "phase 1" probe into the deal and if Amazon can't appease the regulators concerns a review would move into a "phase 2," according to the report.
The potential EU probe comes as investors have been concerned about antitrust issues with Amazon (AMZN) purchase, especially in the U.S. and the U.K. Amazon (AMZN) and iRobot (IRBT) received a second request to do a more in-depth review from the Federal Trade Commission in September. In October Sen. Elizabeth Warren (D-MA) as well as five other members of Congress urged the FTC to block the transaction.
"We continue to work cooperatively with the FTC in their reviews of this transaction," an Amazon (AMZN) spokesperson said in an email to Seeking Alpha talking about regulatory reviews of the iRobot (IRBT) deal.
Several media outlets reported earlier this month that FTC is preparing a potential antitrust lawsuit against Amazon (AMZN) due to alleged anticompetitive business practices and Bloomberg reported the suit could include the iRobot (IRBT) deal.
In November it was reported a that nonprofit tech watchdog group was urging the U.K.'s competition regulator to investigate the Roomba maker's planned sale to Amazon.
iRobot (IRBT) short interest is 18%.
iRobot reported Q4 results on Monday.