Colorado attorney general prepares for trial to block Kroger, Albertsons merger

DENVER ( KDVR ) — Colorado’s lawsuit against the parent companies of King Soopers and Safeway is set to begin next week. Before that happens, Colorado Attorney General Phil Weiser briefed the public about the case.

Several other lawsuits surrounding the merger are being heard across the U.S., but Weiser said Colorado’s case is a little different from the rest.

“In July, a district court judge ruled that the merger had a reasonable probability of violating the law here in Colorado — the Colorado Antitrust Act. That ruling put a temporary pause on the merger. We’re now prepared for what we believe will be the case that will end this merger and will prevent it from harming Coloradans,” said Weiser during a news conference Thursday.

Weiser said he is ready to argue against lawyers representing Kroger and Albertsons, the parent companies of King Soopers and Safeway, respectively.

“This merger would concentrate a market and create a mega grocery store that would be able to raise prices , have less variety, have fewer stores, offer less local food, less customer service and more,” Weiser said.

A case in Oregon brought by the Federal Trade Commission that sought to block the merger of Kroger and Albertsons just wrapped up. There’s a comparable case in Washington state.

Weiser said Colorado has evidence that the two grocers were colluding during the grocery worker’s strike two years ago.

“When there was a strike here in Denver, what did the King Soopers do? They approached Safeway and said, let’s have an agreement so you won’t poach our workers. They didn’t want to compete with one another for workers and they engaged in illegal collusion. We’re seeking civil penalties because of that concern,” Weiser said. “In addition to stopping the merger, I mentioned two separate antitrust offenses: a no-poach agreement that harmed employees and a non-solicitation agreement that depresses customers of competition. We are also seeking relief and civil penalties, and both of those matter as well.”

The attorney general said the trial should last about three weeks starting Monday.

A spokesperson for Kroger sent over the following statement ahead of the trial:

“Kroger is merging with Albertsons to bring lower prices to more customers, protect good-paying union grocery jobs and deeper investments in the communities they serve. If the merger is blocked, grocery prices will be higher and the larger, non-union retailers Walmart, Costco and Amazon will become even more powerful and unaccountable.”

The two grocery companies have previously said they are disappointed in the case going to trial, calling it a premature decision from Weiser.

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