(AmericanProsperity.com) – Kroger and Albertsons, the supermarket chains, have been attempting to complete a merger deal but are being stalled by the United States government, specifically the Federal Trade Commission.
The grocers stated that their merger will help them compete with larger retailers such as Costco, but the FTC says that this merger risks eliminating competition and raising grocery prices when the country is already facing financial strife.
A federal District Court Judge in Portland, Oregon will look at the case and consider both sides to decide whether or not to grant the preliminary injunction request from the Federal Trade Commission.
The main reason that Kroger and Albertsons want this merger is for more leverage with suppliers, and it would help with competition against larger rivals, like Walmart. Antitrust regulators are the main entities pushing against the deal due to concerns that it would eliminate competition and potentially start a monopoly.
The FTC filed a lawsuit in Oregon seeking a preliminary injunction, and multiple states including Maryland, Nevada, Oregon, and Wyoming all joined in on the lawsuit.
If the judge does agree to go forward with a preliminary injunction then the chances are that Kroger and Albertsons would appeal to a higher court. The lawsuit would then continue through the FTC’s court system, but this in itself could take over a year. If the Oregon judge agrees with the grocers, then the FTC will most likely appeal to a higher court, which could still go through the FTC’s own court system.
In response to the FTC’s pushback, Kroger sued the Federal Trade Commission saying that the agency’s internal proceedings are unconstitutional.
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