Kroger, Albertsons merger hit by FTC lawsuit arguing prices, jobs at risk

ROYAL OAK, Mich. (FOX 2) - The Federal Trade Commission says a Kroger and Albertsons merger would lead to the already increasing food prices going up.

The FTC has filed a lawsuit to stop the grocery chain merger from taking place - because it argues in addition to prices being impacted but job losses and store closures, would also result.

Professor Michael Greiner of Oakland University applauds the lawsuit.

"Most academics have been calling for some time, for increased antitrust enforcement," Greiner said.

The Albertsons chain is mostly found on the western side of the country with a sliver along the northeast.

But as the merger remains up in the air, some are asking if the government should be allowed to intervene.

"The courts have made it very difficult for the government to intervene," Greiner said. "And as a result of that, we’ve seen a real consolidation in the industry. And I think it’s clear that has resulted in higher prices in some cases and lower wages in some cases." 

FOX 2 reached out to Kroger and the grocery chain argues the lawsuit will do more harm than good.

Kroger’s statement reads in part:

"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."

Albertsons agrees the merger will not hurt but only benefit consumers. The company’s statement to FOX 2 reads in part:

"Merging with Kroger will expand competition, lower prices, increase associate wages, protect union jobs, and enhance customers’ shopping experience."

But Professor Greiner who is also an attorney says, research shows these mergers do more harm than good.

"The research says that the vast majority of the time when these companies engage in these acquisitions, it basically destroys value, it's not good for shareholders, not good for economy, (and) not good for the public as a whole," he said.