A King County judge has ruled that the proposed merger between grocery giants Kroger and Albertsons is unlawful, making this the first decision on the merits in a series of state and federal challenges to the merger. This ruling comes after a trial held in September as part of Attorney General Bob Ferguson’s antitrust case against the merger.
Judge Marshall Ferguson determined that the merger violates Washington’s antitrust laws, resulting in the state being awarded its costs and fees. During the hearing, he emphasized the intense competition between Kroger and Albertsons in Washington, stating that a divestiture buyer, C&S Wholesale, would not be able to replicate that competition and would struggle against a merged entity of Kroger and Albertsons.
This ruling effectively blocks the merger, which would have combined two of the largest supermarket chains in Washington—both of which account for over 50% of supermarket sales in the state. Kroger and Albertsons together operate over 300 supermarkets in Washington and employ around 700,000 people across nearly 5,000 stores nationwide, generating combined annual revenues exceeding $200 billion.
Attorney General Ferguson expressed his commitment to challenge monopolies to maintain affordable prices for consumers and protect workers’ jobs. He highlighted that the merger could eliminate Kroger’s closest competitor and reduce choices for customers. Notably, internal communications from Albertsons executives revealed worries regarding the legality of the merger and the possibility that it would not lead to lower prices.
The Antitrust Division of the Office of the Attorney General is tasked with enforcing both state and federal antitrust regulations. Their efforts include investigating anticompetitive practices and litigating cases to uphold consumer protections.
This ruling signifies a commitment to maintaining a competitive marketplace in Washington, ensuring that consumers have options and protections against rising grocery prices. It highlights the enduring role of the state in safeguarding the interests of its residents against potential corporate monopolies.
In a broader context, this ruling could inspire similar challenges in other states, fostering a movement toward more stringent scrutiny of large corporate mergers. The reaffirmation of antitrust laws may lead to a more equitable market landscape, benefiting both consumers and employees.