Kroger Wants to Block FTC Case Against Albertsons Takeover

Kroger Co. I’m trying to block Federal Trade Commissioninternal case against planned purchase of competing grocery store Albertsons Cos.claiming that the proceedings are unconstitutional.

The FTC, eight states and Washington, D.C., challenged the Kroger-Albertsons merger in February, suing to block the largest supermarket merger in U.S. history. The agency argued the merger would result in higher grocery prices for American customers.

Kroger, in a Monday filing in Ohio federal court, argued that the FTC’s case moving through the agency’s internal administrative court violates the constitutional separation of powers. The company is seeking a preliminary injunction against the FTC’s action.

Kroger argued that “private rights — such as life, liberty, and property” should be decided only by federal courts, citing a recent Supreme Court ruling.

In this case, Securities and Exchange Commission v. Jarkesy, the Supreme Court stopped the SEC’s ability to file complaints before internal judges. Legal observers predict the precedent will extend to other administrative agencies, although it is unclear how lower judges will interpret the decision.

The Kroger-Albertsons deal faces several legal challenges, including a federal court challenge in Oregon, two state lawsuits in Colorado and Washington, and an FTC administrative action. A consumer group unsuccessfully sued over the deal last year.

The merger has been put on hold pending the outcome of an antitrust dispute in Colorado.

Kroger and Albertsons say the $24.6 billion acquisition will help the grocers compete with big box retailers like Amazon.com Inc.

The FTC said the deal would harm consumers by reducing competition and increasing the company’s influence over workers, which would slow wage growth.

To contact the reporter about this article:
Emily Birnbaum in Washington at [email protected]

To contact the editors responsible for this article:
Sarah Forden at [email protected]

Elizabeth Wasserman, Peter Jeffrey