OLYMPIA, WA (MyBellinghamNow.com) – The proposed merger between grocery giants Kroger and Albertsons just hit another roadblock.

The Federal Trades Commission (FTC) is suing to block the $25 billion deal, saying it would eliminate competition and lead to higher prices for millions of Americans. It comes weeks after Washington state Attorney General Bob Ferguson sued to block the merger under similar concerns.

Albertsons and Kroger, which is the parent company of Fred Meyer, have more than 300 locations in Washington and account for over half of its grocery sales. The two companies agreed to merge in October 2022 in hopes to better compete with Walmart, Amazon, Costco and other big rivals. Both companies say they will challenge the FTC’s lawsuit in court.

Meanwhile, a pro-labor group claims grocery workers’ pay would take a hit from the mega-merger.

The Economic Policy Institute (EPI) has released a study that finds the merger would reduce employment options for workers and put downward pressure on their wages. They say 776,000 workers would see an overall loss of $334 million in earnings. That averages out to $450 in annual wages lost per worker.

They acknowledge that higher unionization rates in areas affected by the merger could mitigate some of the losses. The EPI is a think tank that’s closely tied to unions and the labor movement.