Amazon’s Whole Foods Acquisition Wins Approval From The FTC, Shareholders

Published on

The agency chose not to block the deal based off speculation

Back in June, Amazon announced that it would be acquiring Whole Foods for $13.7 billion. Critics were quick to respond that the deal was a huge threat to competition in the grocery industry and that it shouldn’t receive approval from regulators.

Nevertheless, it looks like the deal will likely close by the end of 2017. Both Whole Foods shareholders and the U.S. Federal Trade Commission (FTC) cleared the acquisition on Wednesday, according to a Reuters report.
“The FTC conducted an investigation of this proposed acquisition to determine whether it substantially lessened competition under Section 7 of the Clayton Act, or constituted an unfair method of competition under Section 5 of the FTC Act,” the agency said in a statement. “Based on our investigation we have decided not to pursue this matter further.”

Winning approval

At the end of its statement, the FTC asserts that it “always has the ability to investigate anticompetitive conduct should such action be warranted,” but Erik Gordon, a business professor at the University of Michigan, said that it was always likely that the deal would win government approval.

“[The FTC] declined to block the deal based on a fear that a big, powerful company could use its muscle in some markets to reduce competition in another market. If Amazon actually does that, the commission can step in,” he said.

Bitter pill

However, despite this line of reasoning, the decision is still a bitter pill for opponents of the deal. Consumer Watchdog, an advocacy group that had pressured the FTC to block the merger, expressed its disdain for how things turned out.

“Apparently the only way to hold Amazon accountable for its abuse of consumers is at the state level,” the organization said in a statement.

Whole Foods’ union workers were also dismayed. 

“Amazon’s reach will ultimately reduce the number of grocery competitors that consumers can choose from,” said Marc Perrone, president of the United Food and Commercial Workers International Union, in a July statement. “Regardless of whether Amazon has an actual Whole Foods grocery store near a competitor, their online model and size allow them to unfairly compete with every single grocery store in the nation.”

Latest Privacy Videos
Video thumbnail
KCAL-LA - Los Angeles, CA: Personal Data Used To Target Shoppers
06:36
Video thumbnail
KCBA (FOX) - Monterey, CA: CA Bill Aims To Put An End To Surveillance Price Gouging
00:55
Video thumbnail
KLAS-LV (CBS) - Las Vegas, NV: Surveillance Pricing
00:46
Video thumbnail
KIRO-SEA (CBS) - Seattle, WA: CA Lawmakers Consider Bill On Price Gouging
00:51
Video thumbnail
AB 446 Press Conference
13:52
Video thumbnail
Consumer Alert: Surveillance Pricing
02:07
Video thumbnail
KTTV-LA (FOX) - Los Angeles, CA: Prices Are being Adjusted Based On Your Shopping Habits
03:42
Video thumbnail
KTVU-SF (FOX) - San Francisco, CA: Surveillance Price Gouging
05:49
Video thumbnail
KCAL-LA - Los Angeles, CA: Surveilance Price Gouging
03:17
Video thumbnail
KBCW 44 Cable 12 - San Francisco, CA: Meta Holiday Hack
03:25
Video thumbnail
KTVU-SF (FOX) - San Francisco, CA: Several Tech Bills Head To Governor's Desk
06:12
Video thumbnail
Al Jazeera: Google antitrust law trial US court says google is a monopolist, violated law
02:16
Video thumbnail
Consumer Alert — National Data Breach
01:24
Video thumbnail
KTVU-SF (FOX) - San Francisco, CA: Calm App, Doordash Software Sued For Data Sharing
05:40
Video thumbnail
Consumer Alert: No Opt Out
00:49
Video thumbnail
KCAL-LA - Los Angeles, CA: Investigation Into California's Newborn DNA Database
03:39
Video thumbnail
Consumer Alert: Data Parasites
02:07
Video thumbnail
KCBS - Los Angeles, CA: California Biobank Stores Every Baby's DNA; Parents Had No Idea
04:26
Video thumbnail
Consumer Alert: Wall Street using AI
01:48
Video thumbnail
KCBA (FOX) CA: Clearview AI Is Creating An AI Facial Recognition Software That Violates Privacy Laws
00:35
Video thumbnail
KGO CA: Consumer Watchdog Calls Attorney General to Investigate Clearview AI For Violating State Law
03:06
Video thumbnail
KNTV-SF (NBC) - San Francisco, CA: Tesla Recalls Millions of Cars
02:29
Video thumbnail
Consumer Alert: Clearview AI
01:19
Video thumbnail
Californians Now Have More Power Over Their Data
01:07
Video thumbnail
KPIX CBS TV-5 San Francisco, CA: Your Car's Computer Could Be Tracking And Reporting Your Every Move
00:48
Video thumbnail
California Votes YES on Privacy- Prop 24
13:14
Video thumbnail
Rage For Justice Report Podcast- Prop 24 For Your Privacy
19:18
Video thumbnail
Consumer Watchdog Hacks Tesla
02:00
Video thumbnail
FOX KSWB: New Internet-Connected Cars Could Get Hacked
01:05
Video thumbnail
ABC: Kill Switch Report Highlights Widespread Hacking Vulnerability of Connected Cars
02:12
Video thumbnail
KTTV FOX: Consumer Watchdog Report Warns That Hackers Can Take Over Your Car
05:02
Video thumbnail
SPECNEWS1: Watchdog Warns Cars With Internet Connection Vulnerable to Hacking
00:37
Video thumbnail
KBCW: Connected Cars Pose Risk to Driver Safety Due to Hacking Vulnerability
02:31
Video thumbnail
ABC KGO: Whistleblower Engineers Warn Connected Cars Need A Kill Switch to Stop Hacking
02:10
Video thumbnail
KCAL: Alarming Watchdog Report Shows Connected Cars Are Vulnerable to Hacking
02:51
Video thumbnail
ABC KGTV: Report Says Internet-Linked Cars Are Vulnerable To Hackers
00:30
Video thumbnail
KTTV Fox 11: Consumer Watchdog Report Shows How Vulnerable Connected Cars Are To Dangerous Hacking
01:05
Video thumbnail
NBC: Watchdog Report Show Connected Cars Lack of Cybersecurity Put Drivers at Risk
03:38
Video thumbnail
CBS KGPE: Connected Cars Pose A Cybersecurity Risk
03:05
Video thumbnail
Fox WDAF: High-Tech Cars Put Drivers At Risk Of Hacking Interference
00:47
Video thumbnail
ABC WXYZ: Connected Cars Can Be Hacked Says Kill Switch Report
01:36
Video thumbnail
KTTV GDLA: US Senators Write NHTSA About Connected Car Concerns
01:17
Video thumbnail
FOX KPTV: Kill Switch Report Details Cybersecurity Issues With Internet Connected Cars
02:28
Video thumbnail
CBS LA: Kill Switch Study Finds Connected Cars Are Vulnerable to Hacking
01:41
Video thumbnail
FOX KTTV: Consumer Watchdog on Privacy Issues, Hacking Risks With Internet-Connected Toys
03:00
Video thumbnail
CBS Evening News With Norah O'Donnell: Jamie Court Explains the Value of CA's Consumer Privacy Act
02:04
Video thumbnail
WAFF TV-48 Alabama: Watchdog Report Highlights Car-Hacking Risks
03:16
Video thumbnail
ABC KFSN: Internet-Connected Vehicles At Risk Of Being Hacked Says New Watchdog Report
00:33
Video thumbnail
KPIX CBS: Connected Cars Need A Kill Switch To Stop Dangerous Hacking
02:31
Video thumbnail
KCAL: Kill Switch Report Warns of Hacking Risk For Connected Cars
01:29

Privacy In The News

Latest Privacy Report

Support Consumer Watchdog

Subscribe to our newsletter

To be updated with all the latest news, press releases and special reports.