An appliance is provided. The appliance includes a transceiver, and a processor configured to, based on an external appliance being identified to be adjacent to the appliance, receive arrangement state information of the external appliance through the transceiver, identify whether the appliance is a slave device controlled by the external appliance or a master device to control the external appliance based on the arrangement state information of the external appliance and arrangement state information of the appliance, based on the appliance being identified as the slave device, transmit a control authority to the external appliance through the transceiver, and based on the appliance being identified as the master device, request the control authority from the external appliance identified as the slave device through the transceiver.