WA Attorney General files lawsuit hoping to block Kroger-Albertsons merger
The proposed merger between Kroger and Albertsons is being challenged in court. Washington State Attorney General Bob Ferguson filed a lawsuit to block the merger in a King County Superior Court Monday, Jan. 15.
A news release from Ferguson’s office said the merger of the “two largest supermarket companies in Washington state will severely limit shopping options for consumers and eliminate vital competition that keeps grocery prices low.”
According to the news release, many markets would be cornered by Kroger with near-monopolies despite both grocery chains’ mitigation proposal to sell off more than 100 stores in Washington.
While the lawsuit asks for an injunction to block the merger nationwide permanently, the AG is also asserting that the merger violates antitrust laws in Washington.
Ferguson said in the release that the merger affects both workers and shoppers.
“Free enterprise is built on companies competing, and that competition benefits consumers. Shoppers will have fewer choices and less competition, and, without a competitive marketplace, they will pay higher prices at the grocery store,” said Ferguson. “That’s not right, and this lawsuit seeks to stop this harmful merger.”
Nationwide, Kroger and Albertsons are the fourth and fifth largest grocers, respectively. In Washington, the two grocers are the largest chains with ownership of more than half of the grocery stores in the state. Kroger alone employs more than 21,000 individuals in Washington.
Between both companies there are more than 700,000 individuals employed nationwide in 5,000 stores in nearly all 50 states.
In an email to McClatchy, a spokesperson for Kroger and Albertsons said that they were disappointed with Ferguson’s “premature decision to file a lawsuit while the merger is still under regulatory review.”
The spokesperson noted that they are in “active and ongoing dialogue” with the Federal Trade Commission and other state Attorneys General.
They also added that both parties will “vigorously defend this in court because we care deeply about our customers and the communities we serve, and this merger will result in the best outcomes for Washington consumers.”
“Blocking this merger would only serve to strengthen larger, non-unionized retailers like Walmart, Costco and Amazon, by allowing them to maintain and increase their overwhelming and growing dominance of the grocery industry,” the spokesperson said. “In contrast, Kroger and Albertsons Companies merging will bring lower prices to more customers, strengthen and create good-paying union jobs, and bring more fresh, affordable food to more communities.”
This story was originally published January 15, 2024 at 11:57 AM.
