Amazon’s Planned Acquisition of Zoox Illegal Under Clayton Act

Washington, DC – The following is a statement from Barry Lynn, executive director of the Open Markets Institute in regard to Amazon’s planned acquisition of Zoox:

The Open Markets Institute, calls on federal and state antitrust enforcers to block Amazon’s plan to take over the autonomous driving car company Zoox. In making the announcement, Amazon spoke of Zoox as a company focused on “autonomous ride hailing.” But antitrust enforcers should recognize the broad effects on multiple markets, and not narrowly focus on ride-hailing alone. Amazon’s intention here is to further strengthen the corporation’s existing dominance in e-commerce and fulfillment. The deal will also clearly further Amazon’s already dominant position in the market for essential robotic technologies. The Clayton Act deems illegal all mergers that may lessen competition or tend to create a monopoly, and this deal does both. It must be blocked.

This proposed deal also illustrates why it is vital for U.S. anti-monopoly enforcement agencies, the executive, and Congress to impose a moratorium on all takeovers by large corporations and funds for the duration of the COVID-19 crisis, as Open Markets first urged in March. Amazon’s monopoly power over America’s consumer economy has grown only more extreme during the pandemic, and this deal will fortify that power even further. As Sen. Warren and Rep. Ocasio-Cortez have made clear, it is vital that America prevent already dangerously powerful corporations from exploiting this crisis to further concentrate control over American commerce and American society.