FTC Does Not Challenge Amazon’s Acquisition of One Medical
The Federal Trade Commission (FTC) has decided that it will not challenge Amazon’s acquisition of One Medical, a membership-based primary care medical practice that provides in-office services in several major U.S. markets and anytime access to virtual care. The $3.49 Billion acquisition was officially completed in February of this year. While the FTC declined to contest the transaction, the FTC warned that it continues to investigate the deal to explore potential anti-competitive effects and privacy concerns raised by Amazon’s access to One Medical’s health data and that Amazon is entering into this transaction at its own risk. Under Federal law, the FTC is permitted to challenge a merger even after the deal has closed and even if the merger was subject to premerger FTC review.
While the One Medical acquisition represents Amazon’s first foray into the medical provider market, Amazon is already entered into several other transactions in the healthcare marketplace. Amazon bought pharmacy provider PillPack in 2018 and used the provider to launch an in-house pharmacy service. Amazon also introduced an app-based health service for employees in 2019 that it later offered to other companies. In 2021, Amazon introduced a custom Alexa device for senior living communities and large healthcare systems.