Kroger-Albertsons Merger Tests FTC’s Focus on Labor Competition

The fate of grocery store workers is emerging as a pivotal factor in the Federal Trade Commission’s impending decision on whether to sue to block The Kroger Co. ‘s $24.6 billion acquisition of Albertsons Cos.

The deal’s potential impact on the grocery companies’ combined workforce will further test how far the FTC will go in using its antitrust authority to consider merger impacts on labor markets. If the commission sues to block the merger, it’ll likely assert its arguments on how the merger may trigger layoffs, store closures, and reduced pay, antitrust attorneys say.

The labor concerns surrounding the ...