OAN Staff Avril Elfi
Monday, August 26, 2024 5:19 p.m.
A trial has begun at the Federal Trade Commission (FTC) as the agency continues its efforts to block the merger between Kroger and Albertsons, arguing that the deal would “harm customers and undermine competition” in the grocery store industry.
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On Monday, the FTC began a trial aimed at legally blocking the $25 million merger.
Kroger and Albertsons first announced their proposed merger in October 2022, then revealed their full plans in September 2023.
The two companies have agreed to sell C&S Wholesale Grocers to about 600 locations, subject to regulatory approval of the deal.
Additionally, Kroger has promised to cut grocery prices by $1 billion if the deal goes through, making it the largest merger in the history of the grocery industry.
But soon after, the FTC and several states filed lawsuits to block the deal, arguing that the merger would raise grocery prices for consumers and reduce the bargaining power of union members in the industry.
“Stopping this multi-billion-dollar transaction will help curb rising food prices and preserve the robust competition that fosters improved quality and innovation,” FTC Chief Trial Counsel Susan Musser said in opening statements Monday.
Kroger lawyer Matthew Wolff said in opening statements that the plan would immediately lower prices for Albertsons shoppers, which are 10 to 12 percent higher than prices at Kroger stores.
He went on to say that the FTC’s efforts to block the deal show that “they don’t understand the industry or the people in it.”
Wolf added that the merger would also help the company compete with rivals such as Walmart, Costco and Whole Foods.
The FTC lawsuit is a key part of the Biden-Harris administration’s “consumer initiative,” as well as FTC Chairman Lina Khan’s efforts to use antitrust law to increase worker mobility.
U.S. District Judge Adrian Nelson is overseeing the case in Portland, Oregon, and is discussing whether the deal should be halted while an FTC internal judge investigates the merger’s potential impact on competition.
The trial, expected to last about three weeks, will also include testimony about the competitiveness of the grocery business and C&S Wholesale Grocers’ ability to manage the 579 stores it would acquire if the Kroger-Albertsons merger goes through.
The trial dates for the additional challenges from Colorado and Washington will follow the FTC lawsuit joined by Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, Wyoming and the District of Columbia.
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