Kroger-Albertsons $25B merger hurts shoppers, FTC says as trial kicks off

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Kroger-Albertsons $25B merger hurts shoppers, FTC says as trial kicks off
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e asking the judge to let the deal proceed, saying the tie-up is necessary to compete with multinational corporations like Walmart.

, telling a federal judge in Portland, Ore., that the deal would eliminate competition between the top grocery store chains and hit consumers’ wallets. FTC Chief Trial Counsel Susan Musser urged US District Judge Adrienne Nelson on Monday to pause the deal, saying in opening statements that it would result in Kroger “swallowing” Albertsons.

It is also a key test of FTC Chair Lina Khan’s initiative to use antitrust law to boost wages and mobility for workers. Kroger and Albertsons say the lawsuit’s focus on traditional supermarkets ignores that consumers typically shop for food at a variety of locations including big-box stores like Target and dollar stores such as Dollar Tree.Kroger and Albertsons are asking the judge to let the deal proceed, saying the tie-up is necessary to compete with multinational corporations like Walmart.Kroger has said it will sell 579 of the approximately 5,000 stores it would own if the deal is allowed to go through.

Although Kroger said it could not provide more specifics on the details of the price investments, a source familiar with the matter indicated that the reductions will likely focus on essential and high-demand items first.

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