A King County judge has ruled against the proposed merger between Kroger and Albertsons, declaring it unlawful. This decision follows a trial in September where Attorney General Bob Ferguson challenged the merger on antitrust grounds. The ruling is notable as it is the first to address the merits of this case among various state and federal challenges.
Judge Marshall Ferguson found that the merger violated Washington's antitrust laws and ordered that the state be awarded its costs and fees. He stated, "In my view, the evidence convincingly shows that the current competition between Kroger and Albertsons stores is fierce in the State of Washington." He expressed doubt about whether C&S Wholesale, a potential divestiture buyer with limited retail experience, could match this level of competition.
The merger would have combined two of Washington's largest supermarket chains. Together, Kroger and Albertsons own over half of all supermarkets in Washington and account for more than 50% of supermarket sales. The companies collectively operate more than 300 stores in Washington, including around 194 in the Seattle-Tacoma-Bellevue area.
Attorney General Ferguson emphasized the significance of blocking this merger: “We’re standing up to mega-monopolies to keep prices down,” he said. Ferguson highlighted concerns about high grocery prices and job security for workers as key reasons for opposing the merger.
Kroger and Albertsons together employ over 700,000 people across nearly 5,000 stores nationwide with annual revenues exceeding $200 billion. Ferguson filed his lawsuit in January to prevent what he described as an illegal merger that would eliminate competition and reduce consumer choice.
During his investigation, Ferguson discovered internal communications from company executives suggesting awareness that the merger might be illegal. An Albertsons vice president noted that "you are basically creating a monopoly in grocery with the merger… [it] makes no sense," while an HR director commented on potential pricing issues: “It’s all about pricing and competition and we all know prices will not go down.”
The Office of the Attorney General’s Antitrust Division oversees enforcement of antitrust laws under Washington's Consumer Protection Act as well as federal statutes. It investigates complaints regarding monopolistic conduct and reviews mergers for potential anti-competitive impacts without general fund support.
For those wishing to file complaints about potential anti-competitive activities, information can be found at https://fortress.wa.gov/atg/formhandler/ago/AntitrustComplaint.aspx.