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US, states sue to block Kroger-Albertsons merger, saying it could push prices higher

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The FTC filed the lawsuit in Oregon, joined by the attorneys general of California and seven other states and the District of Columbia.

FILE – A Kroger grocery store is seen, Jan. 23, 2021, in Novi, Mich. The Federal Trade Commission on Monday, Feb. 16, 2024, sued to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal would eliminate competition and lead to higher prices for millions of Americans.

FILE – A customer removes her purchases at a Kroger grocery store in Flowood, Miss., Wednesday, June 26, 2019. The Federal Trade Commission on Monday, Feb. 16, 2024, sued to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal would eliminate competition and lead to higher prices for millions of Americans.

Both companies, immediately after the FTC announcement, said that they will challenge the agency in court. The FTC, which said the proposed deal would be the largest grocery merger in U.S. history, said it would also erase competition for workers, threatening their ability to win higher wages, better benefits and improved working conditions.The Biden administration has also shown a willingness to challenge big mergers in court. Last month, the Justice Department sued to block a proposed merger between JetBlue Airways and Spirit Airlines.

The action by the FTC and the states follows lawsuits filed earlier this year in Colorado and Washington to block the merger. The states that joined the FTC lawsuit Monday are Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming.

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