Albertson and Safeway; Ftc Condition of Merger

Albertson and Safeway; FTC Condition of Merger
Drexel D. Brown
American InterContinental University
Microeconomics (ECON220-1502A-07)

The FTC has been an instrumental aid to the consumer’s best interest, by provisioning policies and orders according to The Clayton Act—anti-trust laws established for balancing the economic structures that encompass the United States various competitive markets within all industries. And so, mergers with major significant as the Albertsons and Safeway; the largest to date, the FTC felt it would be in the best interest of the consumer to divest the collective firm’s potential allocative position on the retail market, by ordering the firm to sell 168 storefront locations. This injunction was to assure that the consumer as well as other firms within the supermarket industry would have a comparative position to maintain their consumer appeal of their demographical markets.

Albertson and Safeway; FTC Condition of Merger
In the recent acquisition of Safeway, Inc., by Cerberus Capital Management, L.P., who owns Albertsons Super Markets, has established a strong position of their competitive market. Both supermarkets: Albertsons and Safeway are well known consumer sought organization throughout the U.S. and the economically competitive markets. (Bureau of Competition, 2013). “The FTC’s Bureau of Competition enforces the nation's antitrust laws, which form the foundation of our free market economy. The antitrust laws promote the interests of consumers; they support unfettered markets and result in lower prices and more choices”. Therefore, the Federal Trade Commission approved their merger but with stipulation that wouldn’t allow the merger to overtly disposition the competition or the industry’s consumers.
Albertson and Safeway
Two well-known supermarket companies that consumers trust and prefer to do their business with are Albertson and Safeway. Albertsons LCC has been in business since 1939;...