Idaho Undecided: Impact Of Kroger-Albertsons Megamerger On Hold

The proposed mega-merger between supermarket giants Kroger's and Albertsons has hit a significant road bump. As we covered last week, the Federal Trade Commission has filed a lawsuit to block the over twenty-four-billion-dollar merger. Despite the pro-merger propaganda, the government says the deal is anticompetitive.

The FTC joins the attorney generals of Washington State and Colorado in suing to block the deal. Idaho's attorney general has not filed a brief on this case that we know of. Idaho is considered one of the least regulated states in the country.

The government wasted no time in explaining why this merger was bad for America.

 "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. "Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating."

Kroger's responded with their own views on this case. The company says that they've lowered prices since 2003, saving consumers five billion dollars, although that would be a challenge in the inflationary cycle we are currently in. 

"The FTC's decision makes it more likely that America's consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts. In fact, this decision only strengthens larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry." 

The merger has been challenged by groups supporting consumer choice and workers' rights in both companies. 

The FTC states that the merger will harm consumers by eliminating head-to-head competition on prices. They say that prices will increase due to a lack of competition.

The merger would also increase the leverage the company has over food workers. The FTC believes that working conditions, wages, and lessened benefits would result if the merger is completed.

The Offices of the Attorneys General of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming are joining the Commission's federal lawsuit.

Will Idaho's attorney general join the suit? We'll continue to update you on this story as it develops.