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FTC investigating Amazon’s purchase of One Medical

The Federal Trade Commission is investigating Amazon’s $3.9 billion acquisition of the first well being group One Medical, a transfer that might delay the completion of the deal.

Both One Medical and Amazon obtained a request for extra info Friday in reference to an FTC overview of the merger, in response to a submitting made with securities regulators by One Medical’s mother or father, San Francisco-based 1Life Healthcare Inc.

Amazon introduced plans in late July to purchase One Medical, a concierge-type medical service with roughly 190 medical workplaces in 25 markets. Last week, the e-commerce big mentioned it could shutter its personal hybrid digital in-home care service referred to as Amazon Care, a One Medical competitor, as a result of it wasn’t assembly prospects’ wants.

The One Medical deal, the primary to be introduced beneath CEO Andy Jassy, was one other push into healthcare for Amazon following its acquisition of the online pharmacy PillPack for $750 million in 2018. 

Groups calling for stricter antitrust rules have urged the FTC to dam the One Medical merger, arguing it could additional develop Amazon’s large market energy. When it was introduced in July, the American Economic Liberties Project in Washington mentioned it was unclear if Amazon would defend sufferers and their delicate medical data.

“Allowing Amazon to manage the well being care information for one more 700,000 plus people is terrifying,” Krista Brown, the group’s senior coverage analyst, mentioned in a July assertion. “Amazon has no enterprise being a serious participant within the healthcare house, and regulators ought to block this $4 billion deal to make sure it doesn’t turn into one.” 

An Amazon spokesperson declined to remark Friday.

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

Last 12 months, the corporate requested unsuccessfully that FTC Chair Lina Khan step other than separate antitrust investigations into its enterprise, arguing she could be biased. Khan was notable critic of Seattle-based Amazon and different Big Tech corporations previous to assuming the chairmanship. As a Yale legislation scholar in 2017, she wrote an influential research titled “Amazon’s Antitrust Paradox.” 

One Medical would mark one of Amazon’s greatest acquisitions, following its $13.7 billion deal to buy Whole Foods in 2017 and its $8.5 billion purchase of Hollywood studio MGM, which closed earlier this 12 months.  

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