Kroger-Albertsons Merger Trial Begins

Published: Aug 26, 2024 Duration: 00:02:59 Category: News & Politics

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WITH THE AGENCIES WHEN OPENING ARGUMENTS BEGIN AND JOINS US NOW. TYLER: THE FTC IS SUING TO BLOCK WHAT WOULD BE THE BIGGEST SUPERMARKET MERGER IN U.S. HISTORY. ALLEGING IT WOULD RAISE PRICES FOR CONSUMERS. I HAD A CHANCE TO CATCH UP WITH THE SENIOR OFFICIAL TODAY WHO TOLD ME THEY'RE PRETTY CONFIDENT IN THEIR CASE. >> COMPETITION IS GOOD FOR KEEPING PRICES LOW AND CONSOLIDATION IS HISTORICALLY AND BASED ON EVIDENCE BAD FOR CONSUMERS ON PRICES, EVEN IF THERE ARE CERTAIN SHORT-TERM BENEFITS FROM CONSOLIDATION. I WOULD SAY LET THE BENEFIT OF COMPETITION FLOW THROUGH THE ECONOMY, AND GROCERIES, IT'S THE MOST IMPORTANT INDUSTRY MAYBE OF ALL. TYLER: FOR THEIR PART, KROGER SAYS THE MERGER WILL ACTUALLY BE GOOD FOR COMPETITION SO THEY CAN COMPETE WITH NONTRADITIONAL GROCERS LIKE AMAZON AND WALMART WHO ARE STARTING TO DOMINATE MARKET SHARE. KROGER ALSO RECENTLY ANNOUNCED A PLAN TO LOWER CONSUMER COST I $1 BILLION AFTER THE MERGER GOES THROUGH, AS WELL AS ANOTHER BILLION FOR IMPROVING WORKER PAY AND BENEFITS. THE FTC SAYS THEY DON'T BUY THE IDEA OF A MERGER IS NEEDED TO LOWER GROCERY PRICES WHICH THE CONSUMER PRICE INDEX SHOWS ARE UP MORE THAN 20% FROM FOUR YEARS AGO. OUR POLL FOUND ITS A TOP ISSUE FOR VOTERS. VICE PRESIDENT HARRIS RECENTLY CALLED FOR A FEDERAL BAN ON PRICE GOUGING AT GROCERY STORES TO COMBAT WHAT SHE'S CALLING CORPORATE GREED. FORMER PRESIDENT DONALD TRUMP HAS CRITICIZE THAT POLICY IDEA. >> AFTER CAUSING CATASTROPHIC INFLATION, COMRADE KAMALA ANNOUNCE SHE WANTS TO INSTITUTE SOCIALIST PRICE CONTROLS. NEVER WORKED BEFORE. TYLER: WE KNOW THAT THE ECONOMY AND PRICES HAVE BEEN A TOP ISSUE FOR VOTERS AND HER PLAN DOES NOT HAVE MANY SPECIFIC SO IT'S HARD TO SAY IF IT WOULD CONTAIN A HARD PRICE CAP, BUT HER CAMPAIGN HE IS SAID SHE WOULD LIKE TO WORK WITH CONGRESS TO IMPOSE NEW RULES AND THE FTC TO ENFORCE THEM. ECONOMIST APPEAR MIXED ON THE PLAN BUT THEY POINT TO A RANGE OF FACTORS THAT GO INTO THE DECISION. KAILEY: IN THE MEANTIME, THE FTC STILL HAS A COURT FIGHT THEY'RE GOING TO TRY AND WIN. WHAT WILL YOU BE WATCHING FOR NEXT IN THIS TRIAL? TYLER: WE ARE EXPECTING THE TRIAL TO GO ABOUT TWO WEEKS. UNIQUE IN THE CASES THE EMPHASIS THEY'RE PUTTING ON WORKER RIGHTS. AN ANTITRUST CASE IS TYPICALLY FOCUSED ON THE CONSUMER. KROGER HAS ANNOUNCED A DIVESTING PLAN TO THE VEST ABOUT 600 STORES FROM THE MERGER AND INSTEAD GO TO A THIRD-PARTY RETAILER. THE FTC IS NOT HAPPY ABOUT THAT, POINTING OUT THAT THE THIRD PARTY IS REALLY A WHOLESALER. FOR KROGER'S PART, THEY PUT OUT A STATEMENT PLEDGING TO PROTECT WORKERS RIGHTS AND POINTING OUT THAT THEY'VE ACTUALLY CREATED 100,000 UNION JOBS SINCE 2012.

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