Amazon and One Medical said Friday that antitrust regulators want more information about the online retailer’s proposed $3.9 billion acquisition of the primary care group.
The Federal Trade Commission sent a second request for information on Friday, One Medical said in a filing with the U.S. Securities and Exchange Commission.
A second request from the FTC means the two cannot move forward with the deal “until the companies have substantially complied with the additional investigatory request,” according to the FTC.
Amazon and One Medical will “promptly respond” to the second request, the primary care group said in the SEC filing.
In July, Amazon agreed to purchase One Medical for $3.9 billion in an all-cash deal.
The transaction gives Amazon a network of more than 200 medical offices across 25 markets that care for about 790,000 members, according to One Medical’s quarterly filing for the period ended June 30.
Almost all of One Medical’s members, or 750,000, have access to One Medical physicians through a paid membership or sign-up through their employer, according to the filing.
Last year, One Medical completed its acquisition of Iora Health, a primary care group focused on caring for seniors, pushing the group to take on more risk-based arrangements with Medicare.
Industry observers have closely watched Amazon’s healthcare ambitions.
In a surprise to some, Amazon announced last month that it will shutter Amazon Care, its bid at providing primary care services with telehealth capabilities.
Amazon Care targeted corporate clients but seemingly failed to get enough traction.
Amazon Care “is not a complete enough offering for the large enterprise customers we have been targeting, and wasn’t going to work long-term,” Neil Lindsay, senior vice president of Amazon Health Services, wrote in a memo to Amazon Health Services employees.