In October 2022, I shared a big announcement in the retail world: Two massive, U.S. grocery store chains, Kroger and Albertsons, had agreed to merge, in a deal worth nearly $25 billion: Advertisement CNBC: Rival grocers Kroger and Albertsons on Friday announced plans to team up.
The Federal Trade Commission and nine state attorneys general filed a lawsuit Monday in federal court meant to block the merger of Kroger and Albertsons: Advertisement The Federal Trade Commission sued to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal would eliminate competition and lead to higher prices for millions of Americans.
In a press release, the agency explained why it chose to file the suit: The FTC charges that the proposed deal will eliminate fierce competition between Kroger and Albertsons, leading to higher prices for groceries and other essential household items for millions of Americans.
For thousands of grocery store workers, Kroger's proposed acquisition of Albertsons would immediately erase aggressive competition for workers, threatening the ability of employees to secure higher wages, better benefits, and improved working conditions.
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.
Kroger on Monday argued the FTC's rejection of the merger would lead to higher food prices and fewer grocery stores.
"The fact of the matter is, people are not shopping at Amazon as a substitute for going to their local grocery stores," Rahul Rao, deputy director of the FTC's Bureau of Competition, told NPR. "The other store formats don't actually compete on a day-to-day basis" with Kroger and Albertsons.
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