Manatt Antitrust and Competition Partner David Reichenberg wrote an article for Forbes about the Federal Trade Commission’s (FTC) concerns for both consumers and employees when major competitive companies propose a merger.
Reichenberg walked through the FTC’s recent challenge to the proposed merger between Kroger and Albertsons. He emphasized the FTC’s key claim that in addition to foreseeable harm to consumers through higher prices and reduced quality, this merger could also negatively impact employees. In contrast, he added, the FTC contends that competition between the two companies propels higher wages and improved working conditions as they compete to hire and retain workers. As the complaint alleges, “the proposed acquisition would eliminate or greatly curtail this competition, threatening the ability of hundreds of thousands of grocery store workers to secure stronger contracts with improved wages and benefits,” he wrote.
Read the full Forbes article here.