Amazon has completed its $3.9 billion acquisition of One Medical, a leading primary healthcare provider that offers both in-person and virtual treatment, as well as lab tests. While the purchase is not expected to lead to immediate changes in One Medical’s services, Amazon had previously stated its plans to “reinvent” healthcare with this takeover.
The Federal Trade Commission (FTC) announced yesterday that it would not contest the acquisition, but the agency is still investigating potential anti-competitive effects and privacy concerns raised by Amazon’s access to health data. An FTC official disclosed to CNN that the agency would caution Amazon that it is closing the purchase at its own risk and may still face a government challenge later.
Amazon has been making deeper inroads into healthcare for several years, having acquired PillPack in 2018 and used the provider to launch an in-house pharmacy service. In 2019, the e-commerce giant introduced an app-based health service for its employees, which it later extended to other companies. In 2021, Amazon unveiled a custom Alexa designed for healthcare. The One Medical acquisition theoretically completes Amazon’s offerings in the healthcare space, allowing it to handle everything from minor doctor’s appointments through to prescriptions.
The FTC’s ability to challenge Amazon’s acquisition remains uncertain, with Commission Chair Lina Khan known to be skeptical of Big Tech. Amazon has even asked for her recusal from antitrust cases. While there is no guarantee that the FTC will succeed in blocking the acquisition, One Medical’s focus on healthcare raises unique privacy concerns that are not always present in tech acquisitions. Furthermore, One Medical is considerably larger than Within, whose acquisition by Meta the FTC recently failed to block.
