02/26/2024

FTC, States Sue to Block Kroger, Albertson's Merger

They claim reduced competition would raise grocery prices

On Monday, the U.S. Federal Trade Commission (FTC) filed suit in federal court to block the merger of supermarket giants Kroger and Albertsons, a union that regulators said would eliminate competition and threaten consumers’ access to affordable groceries.

"Kroger's acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today," said Henry Liu, director of the FTC's Bureau of Competition. "Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing and their working conditions deteriorating."

The $24.6 billion consolidation has been under scrutiny since it was announced in October 2022. While Kroger and Albertsons claim that a merger is the only way to compete with retail giants Amazon and Walmart, state and federal regulators are raising concerns that it would have a ripple effect felt by customers, employees and suppliers across the country. Colorado and Washington state have already filed lawsuits in state courts to block the deal. Arizona, California, Washington, D.C., Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming are joining the FTC's federal lawsuit.

Please select this link to read the complete article from The Washington Post.