A major antitrust lawsuit has been filed by the Federal Trade Commission (FTC) to block the largest-ever supermarket merger in the United States. The $24.6 billion takeover of Albertsons by Kroger has raised concerns about potential price hikes and a negative impact on consumer choice and product quality.

The FTC alleges that the merger would lead to higher prices for millions of shoppers and reduce the variety and quality of products available. Additionally, the agency claims that the deal could harm thousands of store workers by limiting competition for employees and threatening their pay, benefits, and working conditions.

Kroger, however, argues that blocking the merger could actually result in increased prices. Both companies have expressed their intention to present their case in court.

The director of the FTC’s competition bureau, Henry Liu, emphasized the potential adverse effects on consumers, stating that the acquisition would exacerbate the financial strain faced by consumers as grocery prices continue to rise.

With operations spanning several dozen states and a combined total of more than 5,000 stores across 48 states, Kroger and Albertsons employ nearly 700,000 people. Despite their offer to divest hundreds of stores to address regulatory concerns, the FTC has criticized the proposal as insufficient to mitigate the competition lost due to the merger.

Joining the FTC lawsuit are the attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming. While the legal battle unfolds, the outcome of this high-stakes supermarket merger remains uncertain, with significant implications for both consumers and workers.