Amazon’s $3.9 billion acquisition of primary health organization One Medical is being investigated by the Federal Trade Commission, which may have delayed the closing of the deal.
One Medical and Amazon both received requests for additional information Friday along with an FTC evaluation of the merger, according to a filing with securities regulators by One Medical’s parent company, 1 Life Healthcare Inc. of San Francisco.
Amazon announced its intention to acquire One Medical, a concierge-style physician service with about 190 medical offices in 25 regions, in late July. The e-commerce giant announced last week that it would be shutting down Amazon Care, a hybrid virtual in-home care service that competes with One Medical, after it failed to meet customer expectations. has been
The One Medical agreement, first disclosed under CEO Andy Jesse, was Amazon’s second foray into healthcare after its $750 million acquisition of online pharmacy PillPack in 2018.
Groups advocating for stronger antitrust sanctions have petitioned the FTC to ban the One Medical merger on the grounds that it would strengthen Amazon’s already formidable market dominance. The American Economic Liberties Project in Washington said in July that it was uncertain whether Amazon would preserve patients’ sensitive medical records.
“It is dangerous to allow Amazon to hold health care data for an additional 700,000 or more individuals,” Christa Brown, the group’s senior policy analyst, said in a statement released in July. Regulators must block this $4 billion acquisition to prevent Amazon from becoming a bigger participant in the healthcare industry.
On Friday, an Amazon spokesperson declined to comment.
The FTC has issued civil subpoenas in connection with its investigation into Amazon Prime’s sign-up and cancellation procedures.
Last year, the corporation unsuccessfully requested that FTC Chair Leena Khan recuse herself from a separate antitrust investigation into her business on the grounds that she was biased. Prior to becoming chairman, Khan was a major rival to Seattle-based Amazon and other Big Tech firms. In 2017, as a Yale law student, she wrote the influential study “Amazon’s Antitrust Paradox.”
One Medical will be one of Amazon’s biggest acquisitions, following the $13.7 billion acquisition of Whole Foods in 2017 and the $8.5 billion acquisition of Hollywood studio MGM this year.