The agency said,Largest supermarket merger proposal “In U.S. history” could stifle competition, raise prices and harm workers.
“This supermarket megamerger comes at a time when American consumers have seen their grocery prices steadily rise over the past few years. Kroger’s acquisition of Albertsons is expected to increase grocery prices for everyday staples. “This would lead to further price increases, further exacerbating the economic burden currently facing consumers across the country.” Henry LiuDirector of the FTC Competition Bureau.
Nine attorney general Residents of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming have joined the federal lawsuit.
“It is clear that Arizona residents, rural and urban alike, are seriously concerned about the potential for dramatic changes to their daily lives if this merger were to go through,” the Arizona attorney general said in a statement. said. Chris Mays (D) said.
“Bottom line: This merger will benefit the shareholders of these companies, not ordinary Arizonans. We are proud to litigate to stop the merger.”
Kroger and Albertsons are two of the largest companies. competitors in the grocery industry.
Kroger-Albertsons merger will bring more companies together 5,000 stores It spans 48 states under one company, worrying federal regulators, lawmakers and consumer advocates.
“Big grocery chains are driving up prices for American families, and the @Kroger and @Albertsons merger threatens higher prices for consumers, store closures, and lower wages for workers,” the senator said. . elizabeth warren (D-Mass.) wrote on Platform X, formerly known as Twitter.
“By blocking this deal, the @FTC is fighting to protect workers’ jobs and lower food prices.”
The supermarket chains claim the merger is unfair. necessary to compete It has partnered with retail giants Amazon, Walmart and Costco, which it says are becoming increasingly powerful players in the industry.
“If the Federal Trade Commission succeeds in blocking this merger, it will harm customers and strengthen the large multichannel retailers like Amazon, Walmart, and Costco that the FTC claims to regulate. their The dominance of the grocery industry is increasing.” Albertsons spokesperson said in a statement.
a kroger spokesperson He said such a move would “allow large, nonunion retailers like Walmart, Costco, and Amazon to further consolidate their overwhelming and growing control over the grocery industry. “It only strengthens the retailer.”
The Hill’s Taylor Giorno has more here.
