FTC and Kroger in court over proposed merger's impact on prices and competition

From Investing.com: 2024-08-26 15:16:08

The FTC is in federal court with Kroger and Albertsons over a proposed merger’s impact on consumers and workers. The agency argues it would raise prices and decrease competition, urging the judge to pause the deal. Kroger says it would lower prices at Albertsons and compete with Walmart and Amazon.

Union representatives express doubt over the merger’s intentions, while the trial highlights the Biden administration’s aim to lower consumer prices and increase worker wages. The FTC Chair’s initiative to use antitrust law to boost worker benefits is being put to the test in this high-profile case that could last around three weeks.

The lawsuit focuses on traditional supermarkets, but Kroger plans to sell 579 stores and reduce prices by $1 billion after the merger, using strategies like negotiating with suppliers and investing in automation. States like Arizona and California have joined the FTC’s lawsuit, while others like Washington and Colorado have filed their own to block the deal.



Read more at Investing.com: US regulator’s Kroger trial opens with battle over grocery prices By Reuters