SEATTLE, Wash. — In response to the Kroger-Albertsons merger, Attorney General Bob Ferguson has filed a lawsuit to block it as it would severely limit shopping options from customers and eliminate vital competition.
This lawsuit was filed on Jan. 15 as Ferguson believed that the merger of the two largest supermarket companies in Washington would, “severely limit shopping options for consumers and eliminate vital competition that keeps grocery prices low.”
Ferguson also argues that the proposed mitigation plan, which involves selling over 100 stores in Washington, is insufficient. Even with the divestiture, Kroger would maintain a near-monopoly in many markets across the state/
“This merger is bad for Washington shoppers and workers,” Ferguson said. “Free enterprise is built on companies competing, and that competition benefits consumers. Shoppers will have fewer choices and less competition, and, without a competitive marketplace, they will pay higher prices at the grocery store. That’s not right, and this lawsuit seeks to stop this harmful merger.”
The lawsuit, filed in King County Superior Court, will block the Kroger-Albertson merger nationwide.
According to the lawsuit, some company executives have expressed that the merger might be illegal. After rumors of the proposed merger surfaced, a vice president with Albertsons wrote that “you are basically creating a monopoly in grocery with the merger… [it] makes no sense.”
Kroger and Albertsons are the two largest supermarket chains in Washington and rank second and fourth nationally. With over 700,000 employees and combined annual revenue exceeding $200 billion, the merger’s impact would be substantial.
More than half of Washington state supermarkets are currently owned by Kroger or Albertsons, accounting for over 50% of all supermarket sales in the state. The merger would eliminate head-to-head competition between the two largest grocery operators and would negatively affect pricing and product choices for consumers.
The stores are slated to be sold to C&S Wholesale Grocers, a wholesale distributor that currently does not operate any supermarkets in Washington. This move could potentially make C&S the second-largest supermarket operator in the state almost overnight.
Ferguson highlights the inadequacy of the plan, the proposed divestiture plan closely resembles Albertsons’ unsuccessful attempt to sell Washington-based stores to Haggen less than a decade ago. Haggen struggled to operate the divested stores, filing for bankruptcy within a year.
The lawsuit seeks a permanent injunction blocking the merger nationwide, claiming a violation of Washington antitrust law.
The Attorney General’s Antitrust Division is responsible for enforcing antitrust provisions, investigates and litigates complaints of anticompetitive conduct. The division aims to ensure fair competition and protect consumer interests, with funding derived from recoveries made in other cases.
If you would like to file a complaint about potential anticompetitive activity, go to the Washington State Attorney General website for more information.
