Oregon joins feds in suing to block Kroger-Albertsons merger’; AG Rosenblum explains why; Wyden cheers move

(Update: Adding Wyden statement on lawsuit)

'There’s no good for consumers or workers in this proposed merger — and lots of bad.'

PORTLAND, Ore. (KTVZ) -- Oregon Attorney General Ellen Rosenblum joined the Federal Trade Commission and a bipartisan coalition of attorneys general from across the nation on Monday in suing to block the proposed Kroger-Albertsons merger. 

Oregon, the FTC and the other AGs filed to enjoin the merger in U.S. District Court in Portland. This followed a vote by FTC commissioners Monday morning. They said it is the result of thorough investigations by the FTC and the states into the proposed merger’s anticipated effects.

“We are doing this to protect Oregon consumers and workers,” said AG Rosenblum. “We believe this proposed merger would hurt both, and we’re doing our part to prevent it from going forward.” 

Kroger and Albertsons are the nation’s two largest grocery chains. In Oregon, the two corporations operate 176 stores, serving nearly every community in the state. Kroger operates 51 Fred Meyer and 4 QFC stores, while Albertsons operates 96 Safeway and 25 Albertsons stores. 

Monday’s lawsuit seeks to block the proposed Albertsons-Kroger merger. The FTC, Oregon and the other states participating in this legal action allege the proposed merger would violate the federal Clayton Act. That act prohibits acquisitions which may substantially lessen competition. 

“If big grocery stores are allowed to reduce competition this way,” said Rosenblum, “they can charge higher prices for food for no good reason and reduce services, including in their pharmacies. They can also slow the growth of employees’ wages, or even reduce some of those wages. Working conditions and employee benefits can suffer, as well. In short, there’s no good for consumers or workers in this proposed merger — and lots of bad.” 

Oregon Department of Justice and Federal Trade Commission investigators say they found compelling evidence that direct, head-to-head competition between Kroger and Albertsons has forced the two chains to compete vigorously against one another — both on price and on the quality of goods and services offered at their stores. This competition has also benefitted workers, by producing higher wages, better benefits, and improved working conditions.

“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 the FTC’s Bureau of Competition.

Joining Oregon and the FTC in the lawsuit are Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, and Wyoming. Colorado and Washington have already filed lawsuits to stop the merger in their respective state courts.

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Washington, D.C. — U.S. Senator Ron Wyden, D-Ore., released the following statement today after the Federal Trade Commission (FTC) announced it sued to block the proposed merger of Kroger Company and Albertsons Companies, Inc.:

“I called for the FTC to block this merger because it would raise grocery and prescription costs for Oregonians across our state, and it’s clear the FTC agrees. Another strike against this merger is the toll it would take on our veterans and servicemembers who will be forced to drive further to get the care they need with fewer pharmacies accepting TRICARE. The merger would also reduce the power of Oregon’s small farmers, growers and other small businesses to negotiate prices for their goods. I fully support FTC’s decision to take a closer look at this proposed merger -- it is a smart call by President Biden to prioritize lowering prices for Americans and Oregonians, protecting access to prescription drugs, and maintaining the power of unions.”