Maryland AG joins lawsuit blocking merger of grocery giants Kroger and Albertsons

Maryland AG joins lawsuit blocking merger of grocery giants Kroger and Albertsons

BALTIMORE - Maryland Attorney General Anthony Brown has joined the Federal Trade Commission and attorney generals from seven other states and Washington D.C. in suing to block the proposed merger of grocery store giants Kroger and Albertsons.

Both Kroger and Albertsons say they will challenge this lawsuit. They agreed to a merger in October 2022, and said it would help them better compete with big rivals, including Walmart, Amazon and Costco.

The companies, that own brands, including Safeway and Harris Teeter, employ around 710,000 people nationwide, and thousands of people across more than 80 stores in Maryland.

Brown worries the $24.6 million deal could impact jobs and what you pay for groceries.

The lawsuit alleges that the merger violates the Federal Clayton Act, which prohibits the merger of firms if the merger may substantially reduce competition or create a monopoly.

According to the lawsuit, businesses with fewer competitors can charge higher prices while at the same time reducing the quality of what they sell.

"A merger could eliminate competition in many parts of our state which could increase prices for shoppers," Brown said. "The unintentional consequences of a merger could also force stores to close and eliminate hundreds of jobs in Maryland."

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