FTC's attempt to block Kroger-Albertsons merger goes to court

STORY: It's the U.S. government versus two supermarket giants as a trial to block the $25 million merger between Kroger and rival Albertsons began Monday in federal court.

The U.S. Federal Trade Commission (FTC) and several states have sued the grocery retailers, arguing that the proposed deal would eliminate competition, resulting in higher prices for customers and less bargaining power for unionized grocery workers.

Kroger and Albertsons argue that the merger is necessary to compete with companies such as Walmart, the largest grocery retailer in the United States, as well as Costco and Amazon, which owns Whole Foods.

This is a high-profile case for the Biden administration as it seeks to lower prices for consumers.

Higher grocery bills are also an issue in the presidential campaign between Democratic Vice President Kamala Harris and her Republican rival, former President Donald Trump.

The trial is also an important test of FTC Chair Lina Khan's initiative to use antitrust law to increase wages and worker mobility.

The labor market has been a focus area for Khan, a former law professor and congressional antitrust adviser who took over as head of the agency in mid-2021.

Kroger, for its part, has announced that it would sell about a tenth of the roughly 5,000 stores it owns if the deal goes through.

The grocer has also pledged to cut store prices by $1 billion following the merger.

The process is expected to take about three weeks.