WVXU: The feds moved to block the Kroger-Albertsons merger. What does that mean for the Tristate?
UC Law’s Felix Chang, an expert in anti-trust law shares his thoughts
Regulators at the Federal Trade Commission have taken legal action to stop Kroger’s mammoth acquisition of grocery store chain Albertsons Cos.
The proposed $25 billion plan has drawn fire from critics who argue the price of groceries could increase with diminished competition while the layoffs could also be a possibility for grocery store employees. Supporters say the merger is needed for Kroger to compete against other large rivals such as Walmart.
WVXU aired a segment on the proposed acquisition featuring two guests: Felix Chang, professor of law at the University of Cincinnati, and co-director of the Corporate Law Center, and Matthew Weinberg, associate professor of economics at The Ohio State University.
Felix Chang, professor at the University of Cincinnati College of Law, is shown. Photo by Andrew Higley/UC Marketing + Brand.
Chang is an expert in antitrust law and regularly teaches antitrust, business associations, securities regulation, and wills and estates.
Antitrust legal experts are closely watching the U.S. District Court in Portland, Oregon, where a judge has already been assigned and federal regulators have gotten a temporary order barring the deal from going through until arguments are heard in court.
Experts say a look at the history of grocer mergers shows grocery prices tend to go up in concentrated markets and that conditions for grocery store workers are also negatively impacted.
“The track record hasn’t been great for employees either,” Chang told WVXU. “When Sanford was purchased previously, it led to a lot of stores being shut down and a lot of workers losing their jobs.
“Prior to the FTC filing lawsuit, the chair of the FTC, Lina Khan, conducted listening sessions throughout the state of Colorado and one of the consistently negatively heard opinions was from workers who experienced those layoffs from prior purchases and consolidations within this industry.”
Listen to the WVXU segment online.
Learn more about the work of UC Law Professor Felix Chang online.
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