The federal government urged a U.S. District Court judge on Tuesday to temporarily block a proposed merger between Kroger and Albertsons, saying the combination would “almost certainly” benefit shareholders but not everyday shoppers.
Lawyers for the Federal Trade Commission gave their closing arguments at the end of a three-week hearing in Portland, Oregon. The FTC wants U.S. District Judge Adrienne Nelson to issue a preliminary injunction that would block the deal while its complaint goes before an in-house administrative law judge.
Kroger and Albertsons proposed what would be the largest supermarket merger in U.S. history in 2022.
The companies insist that the $24.6 billion deal would allow them to lower prices and more effectively compete with retail giants like Walmart and Amazon.
But the FTC says the deal would eliminate competition and lead to higher food prices for already struggling customers.
Susan Musser, the Federal Trade Commission’s chief trial counsel, argued Tuesday that Kroger and Albertsons primarily compete with each other and not places like Amazon or Costco, where consumers do other kinds of shopping.