Kroger Sues FTC, Calling its In-House Judges Unconstitutional
Kroger sued the U.S. Federal Trade Commission (FTC) on Monday, seeking to block the regulator from reviewing the grocery chain's proposed $25 billion merger with smaller rival Albertsons in its in-house tribunal. Kroger called the tribunal unconstitutional, saying the matter should be resolved in a federal court. The lawsuit filed in Cincinnati comes a week before the company is scheduled to face a trial where the FTC has asked a federal judge in Portland, Oregon to temporarily block the merger while its in-house judges review the deal.
Total Retail's Take: The long-running saga of the proposed Kroger-Albertsons merger continues. Announced nearly two years ago, the merger has seemed to encounter roadblock after roadblock. At heart of the matter is the FTC's belief that the merger will lead to higher prices for consumers, store closures and job losses, thus why it is in opposition. In addition to the FTC's expressed concerns about the merger, states including Arizona, California, Colorado, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, Washington, and Wyoming have filed suit against it.
What Kroger is opposing is where the FTC's lawsuit should be settled, noting that an in-house review by FTC regulators could take years. Kroger Chairman Rodney McMullen said in a statement that the company is "prepared to defend this merger in the upcoming trial in federal court — the appropriate venue for this matter to be heard." One thing appears to be pretty certain: we're unlikely to have a resolution to this situation anytime soon.
