FTC temporarily halts Amazon’s acquisition of One Medical for antitrust investigation

The Federal Trade Commission has temporarily blocked the finalization of Amazon, Inc.’s acquisition of One Medical, a concierge medical service, to ensure the purchase will not violate antitrust laws.

The FTC announced it would halt the deal and requested additional information about the acquisition from both Amazon and One Medical. The review of this information will temporarily delay the completion of the approximately $3.9 billion deal. Amazon’s purchase of One Medical was announced on July 26, just weeks before Amazon also announced it will shut down its own concierge-type medical service, Amazon Care.

The Amazon Care program’s shuttering took patients by surprise, as they were left scrambling to find alternate care before the program’s primary and inpatient services ended in September. The intention to acquire One Medical was announced July 21 in an Amazon press release.

“Amazon will acquire One Medical for $18 per share in an all-cash transaction valued at approximately $3.9 billion, including One Medical’s net debt. Completion of the transaction is subject to customary closing conditions, including approval by One Medical’s shareholders and regulatory approval. On completion, Amir Dan Rubin will remain as CEO of One Medical,” the press release reads.

The FTC’s investigation was prompted by the request of Senator Amy Klobuchar (D-Minn.), a vocal Amazon critic, who sent a letter to the FTC on July 22, the day after the deal was announced, asking it to investigate. 

“This proposed transaction raises questions about potential anticompetitive effects related to the pharmacy services business Amazon already owns and about preferencing vendors who offer other services through Amazon,” the Minnesota Senator wrote. “I also ask that the FTC consider the role of data, including as a potential barrier to entry, given that this proposed deal could result in the accumulation of highly sensitive personal health data in the hands of an already data-intensive company.”

It is unclear at this time how long the investigation will take.