Amazon's planned $1.7 billion acquisition of iRobot is cancelled amid legal and regulatory challenges.

US government lawsuit and European Commission scrutiny over competition concerns led to the deal's abandonment.

The Federal Trade Commission and 17 state attorneys general accused Amazon of illegally maintaining monopoly power.

In response to the failed deal, iRobot is restructuring and laying off 31% of its workforce.

Amazon is obliged to pay iRobot a $94 million termination fee as a result of the acquisition fallout.

The situation highlights an increasing trend of regulatory barriers for tech mergers in Europe, indicating a tougher stance against potential big tech monopolies.

The collapse of this deal may significantly influence Amazon's approach to future acquisitions and its overall business strategy.