FTC Investigating but Won’t Block Amazon Acquisition of One Medical

Amazon can close its acquisition of One Medical without opposition from the Federal Trade Commission (FTC).

The Wall Street Journal (WSJ) reported Tuesday (Feb. 21) that the FTC will keep investigating the purchase of the health clinic operator but won’t sue in time to block it.

The FTC did not immediately reply to PYMNTS’ request for comment.

“The FTC’s investigation of Amazon’s acquisition of One Medical continues,” an FTC spokesman told the WSJ. “The commission will continue to look at possible harms to competition created by this merger as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”

One Medical disclosed the FTC investigation in September, saying both it and Amazon had received a request for more information about the deal.

It was reported at the time that the investigation could delay the deal, as federal competition investigations often take months to finish, with significant antitrust investigations taking around 11 months on average.

The FTC has investigated the deal for at least five months and is especially concerned about how Amazon would handle patient data obtained by One Medical, the WSJ report said, citing an unnamed source.

One Medical is a tech-powered primary care provider offering in-person, digital and virtual care services.

Amazon announced its plans to buy the firm for $3.9 billion in July, subject to regulatory approval.

“We think health care is high on the list of experiences that need reinvention,” Neil Lindsay, senior vice president of Amazon Health Services, said at the time. “Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”

As PYMNTS reported at the time of the announcement, Amazon’s rivalry with Walmart keeps crossing into the healthcare space, with Walmart acquiring telehealth provider MeMD in 2021 and rebranding it as Walmart Health Virtual Care last May.