![]() ![]() The FTC staff ultimately decided that the combination of Albertsons and Safeway would be illegal in 130 markets, ranging from Port Angeles, Washington, to Dallas, Texas. At that point, the deal was essentially on hold until the companies and the FTC could hold negotiations. So how does this apply to the Albertsons-Safeway merger? When Albertsons announced it was planning to buy Safeway, the company was required to notify the FTC. This law prohibits corporate acquisitions that could decrease competition, and also bars forms of price discrimination. The second statute the FTC enforces is the Clayton Act. These illegal practices include companies artificially raising prices by restricting of trade or supply. ![]() It also requires the federal government to investigate and pursue those practices. The Sherman Antitrust Act was passed in Congress in 1890 and prohibits anti-competitive business practices. Antitrust laws are intended to prevent these practices and promote competition, because, according to the FTC, competition fosters better prices, selection and service, and more innovation, than a monopolistic situation. In 19th Century America, the term was synonymous with a monopoly, because those looking to create monopolies would hold their businesses in trusts. Antitrust laws? The term "trust" in this case isn't referring to trust funds. It does this by enforcing antitrust laws and challenging potential mergers that could create monopolies or near-monopolies. Why does the FTC need to be involved? One of the FTC's responsibilities is to promote competition between companies. The Federal Trade Commission approved the merger January 27, 2015. Albertsons and Safeway announced in March 2014 that Cerberus Capital Management, the private investment company that owns Albertsons, was proposing to buy Safeway for about $9.2 billion. First off, what's going on with Albertsons and Safeway? They're merging into one company. ![]()
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