Feds may soon take action against Amazon’s monopoly status

Amazon has been snapping up acquisitions across industries––including healthcare––over the past several years, prompting more than a handful of local and federal investigations into antitrust violations. Now, federal investigations that began in 2019 into Amazon’s potential abuse of power and consumer privacy violations may soon come to fruition with lawsuits to block Amazon’s monopoly status, Politico reported. 

Politico spoke to 10 people with direct knowledge of the FTC’s investigations into the investigations against Amazon, which recently closed on its $3.9 billion acquisition of One Medical, a technology-focused primary care provider. The acquisition was heavily criticized by some lawmakers, including Sen. Bernie Sanders (D-VT), who saw the move as giving Amazon too much power.

Amazon has increasingly stepped into the healthcare space through acquisitions, adding an online pharmacy business, prescription medication membership services, telehealth services and clinical care services to its portfolio. The company’s actions have caused many health tech experts to view the company as a major threat to the core business of health systems, according to a recent survey.

The Federal Trade Commission (FTC), which prevents fraudulent, deceptive and unfair business practices, has been reviewing several of Amazon’s acquisitions from the past few years, including its buyout of iRobot, which agency staff are reportedly leaning toward blocking through a lawsuit. 

In addition, the FTC is investigating potential consumer privacy violations within Amazon’s Ring camera and security business, as well as its Alexa voice assistant. In particular, the investigations are looking at if the privacy practices violate the Children’s Online Privacy Protection Act, four people with knowledge of those investigations told Politico.

Another wide-ranging antitrust lawsuit could take aim at Amazon’s retail operations, though the details of the complaint are unknown. Further, the FTC is pursuing a “dark pattern” probe into complaints from consumers who find it difficult to unsubscribe from Amazon’s Prime membership and other services. Dark patterns are known as deceptive tactics that trick users. Another potential lawsuit revolves around Amazon’s advertising practices for its “Amazon Choice” label that it gives certain products on its marketplace and if the selections are based on pay-to-play.

“The lack of action so far shows the difficulties facing the agency in taking on a company as multifaceted as Amazon—and suggests the FTC is picking its cases with caution, according to some of the people, who are familiar with the agency’s strategy,” Politico reported.

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