A judge from the King County Superior Court in Washington state has denied a request from grocery store conglomerates Kroger and Albertsons to dismiss an antitrust lawsuit filed by Attorney General Bob Ferguson. The trial for this case is set to commence in September.
According to a press release issued by Ferguson's office, the Attorney General initiated the antitrust lawsuit in January to halt the proposed merger between Kroger and Albertsons. Ferguson alleges that this deal would significantly curtail consumers' grocery store options. He further contends that the proposed merger would considerably eradicate competition, which is crucial for maintaining low prices.
"Free enterprise is built on companies competing, and that competition benefits consumers," stated Ferguson in the press release. "My legal team and I will continue working to protect Washington consumers and workers from increased prices and fewer choices."
As per another press release announcing the lawsuit, Ferguson warns that the deal could result in the closure of over 100 stores within the state. Despite Kroger and Albertsons—being the largest supermarket chains in Washington—proposing a plan to alleviate impacts, Ferguson argues that Kroger would still almost monopolize many markets. The lawsuit also asserts that their proposal to sell off stores to a wholesale supplier company could potentially make these divested stores susceptible to failure, posing a risk to employment opportunities and consumer choice.
In February, according to a Federal Trade Commission (FTC) press release, the FTC approved a federal lawsuit aiming to obstruct the proposed merger. The FTC claims that this $24.6 billion deal is anti-competitive. "This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years. 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," said Henry Liu, director of FTC's Bureau of Competition, in his statement included in the press release.
