FTC Challenges Grocery Merger Over Competition Concerns While Companies Tout Benefits
-
The FTC alleges the merger would reduce competition and raise prices, while the companies claim it would lower costs and prices.
-
Experts are split on the potential impact on prices - some predict little effect due to existing competition, others warn of increased concentration.
-
The FTC argues the merger could suppress wages, but the companies vow to invest $1 billion to raise pay and benefits.
-
Blocking the deal could strengthen non-union retailers like Walmart that are expanding in the grocery industry.
-
The merger could help the chains compete with Walmart in serving more upwardly mobile shoppers in growing metro areas.