Source: Chris Scott, MEATINGPLACE, 7/17/17


A member of the U.S. House Judiciary Committee wants the congressional panel to take a closer look at the proposed $13.7-billion acquisition of Whole Foods by Amazon over potential antitrust concerns.

Rep. David Cicilline (D-RI) sent a letter to Rep. Bob Goodlatte (R-VA) and Rep. Tom Marino (R-PA) requesting a subcommittee hearing to discuss “important questions concerning competition policy” and whether the deal will affect the future of retail grocery stores. Cicilline also cited concerns that the purchase gives Amazon competitive advantages ”in terms of size, consumer reach and ability to absorb losses” that could discourage innovation and entrance to such emerging markets like grocery and food delivery.

The letter notes that several leading antitrust law scholars have suggested that the deal seems unlikely to “injure competition or consumers. However, it also argues that market consolidation has allowed a small number of companies to pay lower wages as the grocery industry hires fewer employees.

None of the companies involved have commented on the hearing request and no formal timetable for any hearings moving forward has been established.

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