PHOENIX, Arizona (February 26, 2024) – Arizona Attorney General Kris Mayes, along with the Federal Trade Commission (FTC) and a coalition of eight other states, filed a lawsuit today to block the proposed merger between Kroger and Albertsons.
The lawsuit argues that the merger, which would combine the nation’s two largest supermarket chains, violates the federal Clayton Act by significantly reducing competition and potentially leading to higher food prices for consumers.
Concerns in Arizona:
In Arizona, Kroger and Albertsons’ combined operations employ over 35,000 individuals across 250 stores under various brands, including Fry’s, Smith’s, and Safeway. Attorney General Mayes expressed concerns about the merger’s potential impact on these employees, senior citizens relying on affordable groceries, military families, and residents in rural areas.
Antitrust Concerns:
The lawsuit emphasizes that reduced competition can lead to higher prices, lower wages, and a decline in service and quality. This could negatively impact various sectors, including the grocery industry, labor market, and rural communities.
Arizonans Speak Out:
Attorney General Mayes stated, “I traveled across the state to hear directly from Arizonans about their concerns. Seniors worried about rising food costs, military families expressed anxieties over healthcare changes, and rural residents feared worsened food access.”
Joining Forces against the Merger:
Besides Arizona, the lawsuit is backed by the attorneys general of California, Washington D.C., Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming.
Conclusion:
Attorney General Mayes concluded, “This merger prioritizes shareholder profits over the well-being of everyday Arizonans. I am proud to stand alongside the FTC and other states in opposing this anticompetitive and detrimental merger.”
This news report highlights Arizona’s concerns regarding the potential downsides of the proposed Kroger-Albertsons merger, emphasizing the potential negative impact on consumers, workers, and rural communities. Additionally, it emphasizes the state’s commitment to protecting competition and consumer welfare.
