A U.S. District Court in Oregon granted the Federal Trade Commission’s request for a preliminary injunction to block Kroger Company, which owns Fred Meyer, from acquiring Albertsons Companies, Inc., which owns Carrs/Safeway. The preliminary injunction is a temporary measure to block the merger.
The FTC challenged the merger in February, saying that the deal was anti-competitive. Chief among the complaints was that it would lead to higher prices, loss of competition, and fewer choices. Senator Lisa Murkowski supported the FTC’s decision to sue in February saying there were too many uncertainties to move forward with the merger.
This merger is especially concerning in Alaska, where there are fewer grocery options. After initially saying no stores would be closed, Kroger announced that the Carrs on Parks Highway in Wasilla was one of 18 stores that would be shuttered in Alaska if the merger goes through.
The FTC’s Bureau of Competition Director Henry Liu says the historic win protects millions of Americans across the country from higher prices for essential groceries. And that it is also a victory for thousands of hardworking union employees, protecting their paychecks by ensuring both Kroger and Albertsons continue to compete for workers with higher wages, better benefits, and improved working conditions.
The FTC will begin its in-house hearing on December 18.
