The result, the FTC argues, would be a supermarket chain so big and with so much market share it would be “presumptively unlawful” under antitrust law.
“The proposed acquisition would eliminate substantial head-to-head competition between defendants in the communities in which both firms operate supermarkets today,” the FTC argues in its complaint.
But in their motion to compel the government’s response to their interrogatories, Kroger Co. and Albertsons Cos. Inc. say the specific “contours” of relevant markets will be key to the litigation, adding that the FTC was ignoring how the growth of other competitors like Costco Wholesale Corp., Aldi, and online shopping platforms have changed how shoppers get their groceries.
“Without basic facts stating who plaintiffs allege is in or out of the market and how big those markets allegedly are, defendants cannot even understand, much less adequately defend themselves, against the allegations in the complaint,” the companies argue in their filing last month.
