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FTC wants more information on Amazon’s One Medical purchase

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FTC wants more information on Amazon’s One Medical purchase

The first Amazon deal made under new CEO Andy Jassy is getting Federal Trade Commission scrutiny.

In question is Amazon’s $3.9 billion acquisition of the primary health organization One Medical.

The investigation could delay the completion of the deal.

A request for additional information was received by both One Medical and Amazon on Friday in connection with an FTC review of the merger, according to a filing made with securities regulators by One Medical’s parent, San Francisco-based 1Life Healthcare Inc.

AMAZON TO ACQUIRE ONE MEDICAL FOR ABOUT $3.9B

Sign for One Medical

SAN RAFAEL, CALIFORNIA – JULY 21: A sign is posted in front of a One Medical office on July 21, 2022 in San Rafael, California. Amazon announced plans to acquire health provider One Medical for an estimated $3.9 billion. ((Photo by Justin Sullivan/Getty Images) / Reuters Photos)

In recent years, Amazon has been making a push into health care.

It purchased acquisition of the online pharmacy PillPack for $750 million in 2018.

Scientists working in a lab

Preparations shown at Amazon’s first COVID-19 test lab. (Hardy Wilson/Amazon)

Amazon announced plans in late July to buy One Medical, a concierge-type medical service with roughly 190 medical offices in 25 markets. 

AMAZON SHUTTING DOWN ITS HYBRID VIRTUAL, IN-HOME CARE SERVICE

Last week, the e-commerce giant said it would shut down its own hybrid virtual in-home care service called Amazon Care, a One Medical competitor, because it wasn’t meeting customers’ needs.

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Groups calling for stricter antitrust regulations quickly urged the FTC to block the One Medical merger, arguing it would further expand the company’s massive market power.

The Amazon logo on a building

Amazon.com Fulfillment Center. Amazon is the Largest Internet-Based Retailer in the United States. (iStock / iStock)

An Amazon spokesperson declined to comment.

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The FTC has already been investigating the sign-up and cancellation practices of Amazon Prime and has issued civil subpoenas in that case.

The Associated Press contributed to this report.

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