The Federal Trade Commission is examining Amazon’s deal to purchase One Medical for $3.9 billion, with the company operating clinics in several U.S. markets.
One Medical disclosed the investigations in a securities filing, saying both companies had received a request on Friday (Sept. 2) for more information about the deal, The Wall Street Journal reported.
The bid for One Medical was the first major acquisition Amazon announced during new CEO Andy Jassy’s tenure, as Jassy had been adamant about getting more into the healthcare business. With the buy, the eCommerce giant would gain access to over 180 clinics across roughly two dozen new U.S. markets.
However, the FTC investigation may delay the deal — federal competition investigations often take months to finish, with significant antitrust investigations taking around 11 months on average, according to the report. The agency is also looking into Amazon Prime’s membership program, per a legal petition filed by Amazon last month.
Amazon did not reply to a request for comment sent by PYMNTS.
The company has made other developments in healthcare as of late, with the One Medical acquisition being the catalyst for it to shut down its Amazon Care service.
Read more: Amazon Sunsets Amazon Care as It Beefs Up Healthcare Services
Launched in 2019, Amazon Care was an employee-based telehealth service which dispatched healthcare providers to patients’ homes. When the service was shut, Senior Vice President Neil Lindsay said in a memo to employees that the decision hadn’t been easy and was made after “many months of careful consideration.”
One Medical is a membership-based primary care practice that offers on-site offices in larger U.S. metro areas, along with telehealth offerings. Amazon has been trying to compete with rivals such as Walmart, and many companies have been pivoting to try and add new healthcare offerings within their existing businesses.
See also: Negotiations Said to Move Forward in $8B Bid by CVS for Signify Health
Amazon also put in a bid to buy in-home healthcare provider Signify Health, which makes use of analytics and tech to provide care for employers, health plans, physician groups and health systems.
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