FTC sues to block Kroger's $24.6B acquisition of Albertsons

The Federal Trade Commission (FTC) is suing to block the Kroger Company's (KR) $24.6 billion acquisition of the supermarket chain Albertsons Companies (ACI). FTC regulators claim the deal would cause grocery store price hikes, an issue many consumers already face, while both companies claim blocking the deal will end up hurting consumers and workers.
Former FTC Chairman William Kovacic and Former FTC Commissioner Mozelle Thompson join Yahoo Finance Live to discuss the broader implications the FTC's decision could have on US consumers.
On how the FTC is building its case, Kovacic says: "The traditional criteria they're using I think to create a solid case on the question of whether we're going to see increased concentration in the market. The companies recognize this, and again, the real issue is have they come up with a solution that's going to be sufficient? The FTC also to an extent it has not done before, has highlighted the effect of the transaction on workers. A key argument that the FTC is making is the deal is not just bad for consumers, it's bad for the employees of the two companies."
Thompson follows up with how the companies have reacted and what could happen as a result: "They've made major concessions here. The question is whether those concessions will be viewed as adequate. In addition, the FTC is embarking on a test of its new merger guidelines, and that includes, as Bill mentioned, the impact on labor markets which is a little bit broader view of competition than has traditionally been there. I don't know how much the courts will look at that and adopt it or not. That's a new area."
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[@deg8061]

Here’s what happened when two large supermarket chains merged: “The cost of living with Coles and Woolworths | Four Corners” and “Coles CEO’s Crazy Excuse for Price Gouging!”

[@scarygarrysg1903]

Next, Rodney will be discussing how the targeting system works at Kroger and how it was applied to Evan. Also, he can explain how he retroactively decided COVID wasn't all that bad, and wanted "his" money back.

[@you2angel1]

GOOD. Can we say Monopoly °~•.☆.•~°