Kroger sues the Federal Trade Commission over merger ruling

Published: Aug 22, 2024 Duration: 00:03:56 Category: News & Politics

Trending searches: krogers
Kroger sues FTC THAT HAS BEEN FILLED WITH TECHNICAL DIFFICULTIES AND DELAYS.>>> GROCERY GIANT KROGER IS CHALLENGING A FEDERAL TRADE COMMISSION DECISION THAT IS BLOCKING THE COMPANY FROM MERGING WITH RIVAL GROCERY ALBERTSON'S. KROGER FILED A LAWSUIT ON MONDAY CLAIMING THE AGENCY'S ADMINISTRATIVE PROCEEDINGS ARE UNCONSTITUTIONAL. KROGER ANNOUNCED PLANS TO BUY ALBERTSON'S IN 2022 FOR SOME $24.6 BILLION MERGING THE TWO LARGEST GROCERY STORE CHAINS IN THE U.S. JOINING US FOR MORRIS BOSTON UNIVERSITY LAW PROFESSOR KEITH HILTON. PROFESSOR, THANK YOU FOR BEING HERE. WHY IS THE FTC BLOCKING KROGER'S MERGER TO BEGIN WITH WITH ALBERTSON'S? >> THE FTC'S THEORY IS THAT THE MERGER WILL LEAD TO AN ORDINARY DEGREE OF POWER, PRICING POWER. ALSO, POWER OVER WORKERS. IN OTHER WORDS, ABLE TO REDUCE THEIR WAGES BELOW WHAT THEY WOULD GET IN A COMPETITIVE MARKET. THOSE ARE THE TWO THEORIES BEHIND THE FTC BLOCK, ATTEMPT TO BLOCK THE MERGER. What is Kroger arguing ONE IS HARM TO CONSUMERS AND THE OTHER IS HARM TO WORKERS. >> ECON 101, REMOVING THE COMPETITION. WHAT IS KROGER ARGUING NOW AND HOW ARE TWO SUPREME COURT DECISIONS FROM OVER THE SUMMER AT PLAY HERE? >> THERE ARE TWO QUESTIONS. KROGER'S ARGUMENT ABOUT THE MERGER IN GENERAL HAS BEEN THE MERGER WILL NOT HURT CONSUMERS. AND THAT THE MERGER WILL NOT HURT WORKERS AT ALL. THEY ARE THEORY IS THE MERGER IS EFFICIENCY ENHANCING, WILL LOWER COSTS AND BENEFIT CONSUMERS. THAT IS THE FIRST ARGUMENT. THE SECOND ARGUMENT CONCERNS THE CONSTITUTIONALITY OF THE FTC'S ENFORCEMENT STRUCTURE. AND I THINK KROGER HAS RELIED ON , AT LEAST I HAVE HEARD THEY RELIED LARGELY ON TWO ARGUMENTS. ONE IS A SUPREME COURT DECISION SAYING THAT THE FTC, I'M SORRY, THE S.E.C., SECURITIES AND EXCHANGE COMMISSION, IN ORDER TO IMPOSE PENALTIES HAS TO GO THROUGH A JURY TRIAL. THAT'S ONE CASE THEY ARE RELYING ON. THEY ARE TRYING TO MAP THAT CASE ONTO THEIR CURRENT ISSUE. AND THE OTHER CASE IS DEALING WITH THE APPOINTMENT OF THE FTC , ADMINISTRATIVE LAW JUDGES AND OTHER FIGURES WITHIN THE FTC. AND THE CLAIM THAT THOSE APPOINTMENTS VIOLATE THE CONSTITUTION. SO THOSE ARE TWO CONSTITUTIONAL BASIS FOR KROGER'S ATTACK ON THE FTC. ON THE OTHER HAND, THOSE TWO WERE JUST TWO OF MANY CONSTITUTIONAL ARGUMENTS THAT PARTIES HAVE RAISED RECENTLY. AND I SUPPOSE IF KROGER WANTED TO BE CREATIVE ABOUT IT THEY COULD FIND EVEN MORE What should shoppers know CONSTITUTIONAL ATTACKS TO BRING AGAINST THE FTC. >> WE HAVE LESS THAN A MINUTE WITH YOU? WHAT SHOULD SHOPPERS KNOW ABOUT THIS? HOW WOULD THEY BE IMPACTED IF KROGER'S IS SUCCESSFUL OR IF IT ISN'T? >> I'M NOT SURE WHAT KIND OF IMPACT TO EXPECT. PART OF THE FTC'S ARGUMENT IN BRINGING THIS CLAIM IS THAT PRICES HAVE GONE UP A GREAT DEAL AND THE GROCER MARKETS OVER THE PAST FEW YEARS. THE THEORY IS THAT THIS MERGER WILL SIMPLY BE , SIMPLY ADD ON TO THAT PRICE SURGE. BUT IF THE PRICE SURGE IS LARGELY DUE TO GENERAL INFLATION MY IMPRESSION IS DUE TO GENERAL INFLATION AND NOT DUE TO WHAT THAT GROCERY STORES ARE DOING. I'M NOT SURE THAT THE MERGER WILL HAVE MUCH OF AN IMPACT ON THAT? ANYWAY. AS PART OF THE THEORY. PART OF THE THEORY IS THIS IS JUST ONE THING THAT'S WHAT HURT CONSUMERS MORE

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