California Attorney General Rob Bonta announced a significant legal victory after a federal judge blocked the merger of supermarket giants Kroger and Albertsons. The court found that a challenge to the merger is likely to succeed on its merits, citing concerns over reduced competition and increased food prices nationwide.
In February 2024, Attorney General Bonta collaborated with the Federal Trade Commission and a bipartisan coalition of states by filing a lawsuit in the U.S. District Court in Portland to oppose the proposed merger.
"Halting the Kroger and Albertsons megamerger is a win for California households and communities. As many families continue to feel the burden of inflation, fighting corporate consolidation that threatens to increase grocery prices is more important than ever," stated Attorney General Bonta. "In some markets in Southern California, Kroger-Albertsons would have been the only one-stop grocery option, leaving consumers limited choice over where to shop – and for workers in this industry, where to work. I am tremendously proud of the work of my office and our partners across the state and country in raising the alarm about what this merger would have meant for our communities."
The proposed merger was anticipated to further consolidate an already concentrated retail grocery market in Southern California, which could lead consumers to face fewer choices and higher prices. Additionally, it posed potential challenges for unions negotiating working conditions for thousands of employees in California.
The decision reflects ongoing efforts by Attorney General Bonta's office to enforce antitrust laws. The California Department of Justice has introduced a new Antitrust Complaint Form for reporting potentially anticompetitive conduct.
A copy of the court's decision is available online.