Klobuchar voices concerns over Amazon’s anticompetitive conduct and the acquisition’s implications for personal health data
WASHINGTON - U.S. Senator Amy Klobuchar (D-MN), Chairwoman of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights urged the Federal Trade Commission (FTC) to investigate Amazon’s proposed $3.9 billion acquisition of One Medical, expressing concern over Amazon’s past conduct and the proposed acquisition’s implications for personal health data from a competition perspective.
“ Amazon has a history of engaging in business practices that raise serious anticompetitive concerns, including forcing small businesses on its site to buy its logistics services as a condition of preferred platform placement, using small businesses’ non-public data to compete against them, and, as was recently disclosed in new documents from the House Judiciary Committee’s Big Tech investigation, potential restricting advertising by competitors who could offer lower prices and better service,” said Klobuchar.
“Amazon still continues to buy up more and more companies. In fact, it has bought 118 companies in the last 25 years. 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,” Klobuchar continued. “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.”
The full text of the letter is available HERE and below:
Dear Chair Khan
Today Amazon announced that it is buying One Medical in a deal valued at $3.9 billion. I write to urge the Federal Trade Commission (FTC) to thoroughly investigate this proposed deal.
Amazon has a history of engaging in business practices that raise serious anticompetitive concerns, including forcing small businesses on its site to buy its logistics services as a condition of preferred platform placement, using small businesses’ non-public data to to compete against them, and, as was recently disclosed in new documents from the House Judiciary Committee’s Big Tech investigation, potential restricting advertising by competitors who could offer lower prices and better service. In addition, Amazon has been accused of misrepresenting facts when testifying under oath to Congress, a matter which has been referred to the Department of Justice for further investigation.
Against this backdrop, Amazon still continues to buy up more and more companies. In fact, it has bought 118 companies in the last 25 years.
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. 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.
###
