The Federal Trade Commission is reviewing Amazon’s $3.9 billion acquisition of primary care provider One Medical, according to Securities and Exchange Commission filings reported Friday.
Both companies have received a request from the FTC for “additional information and documentary materials … in connection with the FTC’s review of the Merger,” according to the SEC filings.
The FTC will consider the additional information alongside the notification and other report forms initially submitted to the regulator and the Department of Justice’s Antitrust Division on Aug. 3, per the filings. The request also extends the companies’ mandatory waiting period by another 30 days.
“Both parties expect to promptly respond to the Second Request and to continue to work cooperatively with the FTC in its review of the Merger,” One Medical wrote in the SEC filings.
Amazon announced its $18-per-share purchase of One Medical in July. The news had followed weeks of selloff rumors for the concierge primary care company, which had gone public at $14 per share in January 2020, skyrocketed up to $58 per share in early 2021 and then spent much of 2022 in the $7-$11 range.
The tech giant has since announced plans to end operations of its Amazon Care service, which offered virtual and limited in-person primary care to employer customers, by Dec. 31. Analysts and other experts painted the shutdown as “a strategic move,” noting that One Medical operated a much more mature version of Amazon Care with its 188 clinics, more than 8,000 employer customers and a trove of member data.
One Medical claimed $623 million in 2021 revenue, up 64% from the previous year thanks in part to the acquisition of Iora Health. At the same time, One Medical reported full-year losses of $255 million.
Amazon dove headfirst into the healthcare space in 2018 when it shelled out for online pharmacy PillPack. The online retailer’s escalating healthcare presence has raised flags among antitrust advocates.
Shortly following the One Medical purchase announcement, the American Economic Liberties Project released a statement saying that the deal “will entrench Amazon’s growing presence in the health care industry, undermining competition. It will also pose serious risks to patients whose sensitive data will be captured. … Amazon has no business being a major player in the health care space, and regulators should block this $4 billion deal to ensure it does not become one.”
Amazon was also said to be in the running for home healthcare provider Signify Health, although this weekend proved CVS Health’s $8 billion offer to be the winning bid.