Kroger Challenges FTC Over $25 Billion Merger with Albertsons

Kroger has filed a lawsuit against the Federal Trade Commission (FTC), claiming that the agency's use of an in-house tribunal to review its proposed $25 billion merger with Albertsons violates the U.S. Constitution. The lawsuit, submitted in federal court in Cincinnati, argues that the administrative law judge overseeing the case is not removable by the President, and that the FTC is improperly adjudicating the matter within the executive branch rather than through the judicial system. This legal action comes as the FTC is simultaneously pursuing a court case to block the merger, citing concerns over potential price increases and labor market impacts. Legal experts suggest that Kroger's lawsuit could lead to significant changes in how antitrust regulations are enforced in the U.S. Christine Bartholomew, a law professor, expressed concern that a ruling in favor of Kroger could diminish the FTC's ability to scrutinize corporate mergers effectively. The lawsuit references a recent Supreme Court decision that has limited the powers of regulatory agencies, raising the stakes for both Kroger and the FTC. Kroger's Chairman and CEO, Rodney McMullen, emphasized the company's commitment to providing lower prices and securing union jobs, asserting that the merger is beneficial for consumers. The company is seeking a preliminary injunction to halt the FTC's administrative proceedings, which could prolong the review process for years. The evidentiary hearings for the federal court case are set to begin on August 26 in Oregon, as Kroger prepares to defend its position in what it deems the appropriate legal venue.