Apparently, the Federal Trade Commission thinks grocery prices are high enough as it is.
The FTC is suing to block a proposed merger between grocery giants Kroger and Albertsons, claiming among other things that the $24.6 billion merger would cut out competition and lead to higher prices.
The FTC filed an administrative complaint against the companies Monday, according to a report from The Associated Press. The suit will be considered by an administrative law judge at the agency. It also filed a lawsuit with the U.S. District Court in Oregon, the AP reported, requesting a temporary injunction blocking the merger. That lawsuit was joined by the attorneys general of eight states and the District of Columbia.
Kroger and Albertsons, two of the country’s largest grocers, agreed to the merger back in October 2022, claiming the deal would help them compete with larger rivals such as Walmart, Amazon and Costco.
Kroger and Albertsons would control around 13% of the U.S. grocery market; Walmart controls 22%, according to J.P. Morgan analyst Ken Goldman, according to the AP report.
Both companies, immediately after the FTC announcement, said that they will challenge the agency in court. Cincinnati-based Kroger operates 2,750 stores in 35 states and the District of Columbia. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states.
