Is Amazon getting too big?

While that question has yet to be formally asked by the US government, on Friday we got a hint that it may be next on the agenda after the top Democrat on the House antitrust subcommittee, David Civilline, voiced concerns about Amazon’s $13.7 billion plan to buy Whole Foods Market and in a letter to the House Judiciary Committee, Reuters reports that the antitrust specialist has requested a hearing to look into the deal’s potential impact on consumers. And, as MarketWatch adds, “fresh off its biggest Prime Day yet, the Whole Foods Market Inc. bid, and a slew of announcements including Amazon Wardrobe, Amazon.com Inc. was the subject of two investor calls Thursday that raised concerns that it is getting too big.”

In what could be the start of a wider investigation into Amazon’s impact on the market, Cicilline said in a a statement that “Amazon’s proposed purchase of Whole Foods could impact neighborhood grocery stores and hardworking consumers across America,” adding that, “Congress has a responsibility to fully scrutinize this merger before it goes ahead.” The deal must be approved by U.S. antitrust enforcers, in this case most likely the Federal Trade Commission. While Congress plays no formal role in that process, hearings are often used to highlight the possible impact of deals on consumers. Still, without Republican support, even a hearing is unlikely to happen.

To be sure, Amazon’s dominance across increasingly more sectors – from online retail, to books, to cloud computing, and more recently, groceries and fashion – has not gone unnoticed. In January, EU MarketWatch”cheered the end of audiobook exclusivity between Amazon and Apple”, while last August, Amazon’s offices in Tokyo were searched by the Fair Trade Commission on suspicion that it was breaking antitrust laws. So far there have been no official charges against Amazon.

Meanwhile, on Wednesday Amazon said its latest Prime Day was its biggest day ever, with sales up 60% from the same 30-hour period the previous year and the company said it gained more new Prime members on July 11 than any other day in its history.

Incidentally, news of the potential antitrust hearing emerged earlier in the week, when Doug Kass of Seabreeze Partners said government intervention could be imminent.

In a Wednesday note to readers, Kass, who said he was shorting AMZN stock, said that “I am shorting Amazon today because I have learned that there are currently early discussions and due diligence being considered in the legislative chambers in Washington DC with regard to possible antitrust opposition to Amazon’s business practices, pricing strategy and expansion announcements already made (as well as being aimed at expansion strategies being considered in the future.”