Grocery Store Merger Temporarily Halted Due to Colorado Lawsuit

When it comes to the $25 billion Kroger and Albertsons merger, there’s been a ton of drama.

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What people are worried about is that the merger would constitute a sort of monopoly, particularly in Colorado where Kroger’s King Soopers and Albertsons’ Safeway are direct competitors.

It led to a now nationally publicized lawsuit done by Colorado Attorney General Phil Weiser to block it from happening back in February.

He argued it went against antitrust laws, and wanted it to be completely scratched.

It would appear a judge has made a decision that could possibly lead to that being the case.

Judge Temporarily Blocks Kroger and Albertsons Merger in Colorado

On Thursday morning, Judge Andrew J. Luxen gave a ruling that temporarily blocked the Kroger and Albertsons merger here in Colorado.

The reason the courts are forcing the two grocery store giants to wait is to see what ruling will be made in regards to the Colorado lawsuit.

According to Supermarket News, that hearing was originally set to take place on August 12. Now, it has been pushed back to September 30.

Phil Weiser was thrilled with the news, highlighting that the merger will not be taking place during a busy time of year when the harvest comes in and as children get set to go back to school. 

Why Is This Merger a Big Deal in the First Place?

Again, the worry is that the Kroger and Albertsons merger break antitrust laws, since both companies own many grocery stores across Colorado.

The worry is that because of a lack of competition for customers’ dollars, the new company could increase prices without much recourse.

Of course, Kroger and Albertsons are steadfast that their prices will not be going up anytime soon, saying they will instead go down.

However, the multiple lawsuits from Colorado, Washington, and the FTC suggest that there is enough of a concern that anti-consumer practices may be a part of the plan.