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Questions of competition highlight legal battle over proposed Kroger Albertsons merger

By Ruby De Luna

Questions of competition highlight legal battle over proposed Kroger Albertsons merger

The trial in the merger of Kroger and Albertsons has wrapped up after three weeks of hearings in King County Superior Court.

Washington sued to block the nearly $25 billion deal, arguing it would reduce competition. Here are some key takeaways:

The state says Kroger and Albertsons are each other's main competitors; the companies say Walmart and Costco are the ones to beat.

In closing arguments, Glenn Pomerantz, an attorney for the state noted, Kroger and Albertsons respond to each other whether it's prices, store hours, or quality of products.

"Document after document showed... Kroger lowering its promotional prices to try to beat Albertsons every single week. And Albertsons doing the same thing in response," Pomerantz said. "In fact, your honor, as one person put it, it's a dog fight every single week between these two companies."

While the companies acknowledged they compete against each other, the grocery landscape has significantly changed. Consumers no longer shop at conventional supermarkets alone, but also at natural food stores, ethnic markets, even convenience stores. But the biggest threat, they say is coming from big box stores.

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