the Federal Trade Commission is trying to block the $24.6 billion merger between grocery Giants Albertson and Kroger claiming it will rise prices and reduce quality due to decreased competition among local grocery stores they argue without the merger consumers benefit from more choices and better prices the FTC is supported by attorney generals from several States including Arizona California and New Mexico who are mostly Democrats along with one republican from Wyoming some Republican attorney generals from Alabama Iowa Georgia and Ohio support the merger Colorado and Washington's attorney generals have also filed lawsuits against the merger a judge temporarily blocked the merger in Colorado and trials for these lawsuits are underway Kroger counters the merger will lower prices by boosting competition with big box retailers like Walmart and Costco Kroger promises to invest $1 billion to cut prices and ensure no store closures or layoffs they claim the merger will help them compete better in a market increasingly dominated by large retailers the FTC supported by several Democratic State Attorneys General is concerned the merger will harm consumers by reducing competition and quality they argue the merger would eliminate a key competitor and lead to higher grocery prices and worse working conditions for employees some experts point out food prices are influenced by various factors beyond company mergers like weather conditions and supply chain issues historical data on Supermarket merges show mix results on pricing effects with both price increases and decreases observed the case is currently in trial with hearings scheduled for the coming weeks