The Federal Trade Commission said Monday that it’s suing to block a proposed $24.6 billion merger between supermarket titans Kroger and Albertsons. The agency argued
that the deal would hike prices for consumers and reduce competition from other businesses.
Kroger and Albertsons are the chains behind brands like Safeway, Ralphs and Harris Teeter.
Joining the antitrust lawsuit are attorneys general from eight states, plus Washington, D.C.
Each of these nine jurisdictions expressed similar concerns about monopolization.
The companies vowed to legally contest the action and proceed with integration, but at a time of steep grocery inflation, scrutiny was guaranteed regarding industry consolidation.
The FTC anticipated that the merger could consolidate 13 percent of the market.
“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,” Henry Liu, the director of the FTC’s Bureau of Competition, said in a statement.
The administration has opposed other recent high-profile mergers like JetBlue-Spirit Airlines as well.
Kroger instead blasted the FTC for enabling non-union chains — like Walmart, Costco, and Amazon — to further “increase their overwhelming and growing dominance.” The company insists investments in prices and stores after Albertsons integration would benefit shoppers.
In a similar statement, Albertsons contended that it needed to expand its scale in order to compete with Walmart and Amazon.
However, skepticism endures around mega-mergers touting such uncompromised benefits for all. Plus, the United Food and Commercial Workers union already opposed this deal, anticipating that it would jeopardize jobs.
In any case, with families straining under high prices, officials aim to protect affordable choices in America’s essential grocery aisle.
The Associated Press contributed to this article.