Question

One of the most disruptive events in recent U.S. food/CPG history was the 2017 acquisition of Whole Foods Market by Amazon. This acquisition was approved relatively quickly by the Federal Trade Commission (FTC). Explain the two main reasons why the FTC approved this acquisition relatively quickly.

Answer 1

Reasons

1 Both Amazon and Whole Foods Market are not close competitors and that's why merger won't affect the competition in the market since Amazon is a marketplace/e-commerce company which gives its platform for seller and buyers to sell and buy different kind of products and this include both food and non food products and don't directly manufacture and sell any product.

2 This merger will not reduce or lessen the competition since consumers will still have lot more options to buy from other consumer packaged goods(CPG) companies/food companies and this will not hurt the competition in the market.