The Biden Administration’s Federal Trade Commission has sued over the merger of two of the nation’s large grocery retailers — Albertsons, which owns Safeway; and Kroger, which owns Fred Meyer stores.
The proposed deal is the largest supermarket merger in U.S. history.
“This supermarket mega-merger comes as American consumers have seen the cost of groceries rise steadily over the past few years,” the FTC Bureau of Competition said in a statement. “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.”
Joining the lawsuit were attorneys general from Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon, Wyoming, and the District of Columbia.
An Albertsons spokesperson said that by trying to block the merger, the FTC is giving more power to Amazon, Walmart, and Costco.
“Albertsons Cos. merging with Kroger will expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers’ shopping experience. If the Federal Trade Commission is successful in blocking this merger, it would be hurting customers and helping strengthen larger, multi-channel retailers such as Amazon, Walmart and Costco – the very companies the FTC claims to be reining in – by allowing them to continue increasing their growing dominance of the grocery industry,” the spokesperson said. “In contrast, Albertsons Cos.’ merger with Kroger will ensure our neighborhood supermarkets can better compete with these mega retailers, all while benefitting our customers, associates, and communities. We are disappointed that the FTC continues to use the same outdated view of the U.S. grocery industry it used 20 years ago, and we look forward to presenting our arguments in Court.”
