Consumer Staples archive - The Capitol Forum

FTC’s Proposed Overhaul of PBM Payments May Shift Conversation in Congress to Structural Remedies, Lawmakers Say

Shortly after the Federal Trade Commission (FTC) filed its long-anticipated lawsuit against the “Big Three” pharmacy benefit managers (PBMs), lawmakers told The Capitol Forum that there’s a strong likelihood of Congress passing legislation that would overhaul the PBM business model...

Sep 30, 2024 Read Now >

Kroger/Albertsons: FTC Uses Supermarket Agreements to Try to Show Stores’ Competition for Unionized Workers

For a transcript of the most recent available proceeding please click here, and our library of additional transcripts and exhibits can be found under the “Source Documents” heading here. The FTC today in the trial on the agency and states’ suit to block Kroger’s (KR) $24.6...

Aug 28, 2024 Read Now >

Antitrust Agenda: Warren Links Food-Price ‘Gouging’ to Dominance of Grocery Giants; Bipartisan Call for an Investigation of Formula One; Khan Says the Founding Fathers Recognized the Danger of Monopoly Power; Kanter Sees Corporate America Getting the Message That DOJ Is Serious About Antitrust Enforcement

Supermarket behemoths land on Warren’s chopping block: Senator Elizabeth Warren (D-MA) is blaming the runup in Americans’ grocery bills on the “price gouging” of food behemoths, especially Walmart (WMT), Costco (COST), Kroger (KR) and Ahold Delhaize, which controls Stop & Shop...

May 28, 2024 Read Now >

The Antitrust Agenda: Bipartisan Push in the House to Designate $10 Million of FTC Budget for Enforcement of Robinson-Patman; New FTC Commissioner Andrew Ferguson’s Staff Revealed; Lina Khan Promises Uber/Lyft Drivers That Rideshare Companies Won’t ‘Get Away’ With ‘Deception’; Senator Warren Calls for Breakup of ‘UnitedHealth Monopoly’; Judge Refuses to Toss Washington State Case Against Kroger/Albertsons

In bipartisan letter, lawmakers request $10 million of FTC budget be set aside to put teeth into Robinson-Patman enforcement. Representatives Zoe Lofgren (D-CA), Tom Tiffany (R-WI) and nine of their congressional colleagues have asked the House Appropriations Committee “to designate $10...

May 06, 2024 Read Now >

FTC Commissioner Bedoya Signals Interest in Union Neutrality as Merger Remedy and Previews Speech on Workplace Surveillance

FTC Commissioner Alvaro Bedoya is open to conditioning certain merger clearances on companies’ commitments to allowing their workers to unionize, he told The Capitol Forum in an interview...

Apr 26, 2024 Read Now >

PBM Units of CVS, Cigna, UnitedHealth Targeted in Insulin-Related Lawsuit FTC Preparing to File

CVS Health (CVS), Cigna (CI) and UnitedHealth Group (UNH)—which operate the three largest U.S. pharmacy benefit managers—are targeted in a lawsuit the FTC is preparing that alleges the companies’ PBM units engineered a scheme to trade rebates for favored positioning of brand-name...

Apr 22, 2024 Read Now >

Kroger/Albertsons: FTC’s Novel Argument About Unionized Labor Is Untested at Trial But May Avoid Pitfalls of Past Antitrust Suits

The FTC’s challenge to Kroger’s (KR) proposed $24.6 billion acquisition of rival supermarket operator Albertsons (ACI) is relying on a novel labor argument that, although untested in court, might avoid pitfalls that plaintiffs have experienced in bringing antitrust cases involving...

Feb 29, 2024 Read Now >

PBMs’ Adoption of GoodRx is ‘Algorithmic Price-Fixing’ that Harms Independent Pharmacies, Critics Allege

Pharmacy benefit managers have launched new partnerships with GoodRx (GDRX), representing yet another tactic aimed at undermining financially strapped independent drugstores, industry experts critical of PBMs’ practices told The Capitol Forum. Since January 1, four major PBMs—Express...

Feb 27, 2024 Read Now >

Kroger/Albertsons: State Merger Challenges Could Present ‘Death by a Thousand Cuts,’ But Extra Suits Carry Risks

State lawsuits to block Kroger’s (KR) proposed $24.6 billion acquisition of rival supermarket chain Albertsons (ACI) could provide a form of insurance for the FTC if a widely anticipated challenge of the deal by the agency were unsuccessful, five former antitrust enforcement officials...

Jan 23, 2024 Read Now >

Choice/Wyndham: Four State AGs Request Companies’ Permission to Receive Information on Hostile Bid

Choice Hotels International’s (CHH) $8 billion hostile takeover of rival Wyndham Hotels & Resorts (WH) has triggered requests from the offices of four state attorneys general—Colorado, Washington state, Kansas and Vermont—to receive material the companies are providing the...

Jan 19, 2024 Read Now >

The Antitrust Agenda: Caffarra’s Brussels Conference to Set Tone, Themes for Year in Antitrust; On Litigation Front, Lawsuits vs. Live Nation and Kroger/Albertsons Expected in January/February Time Frame

This article has been updated with a statement from Live Nation. Caffarra’s agenda-setting conference on January 31 (Register here). One development that hasn’t been fully appreciated is how the Biden administration has reshaped competition policy through a new vision for trade,...

Jan 02, 2024 Read Now >

Kroger/Albertsons: Khan Meets With Alaska House Representative as Deal’s Critics, Supporters Make Final Push to Sway FTC

FTC Chair Lina Khan met last week with Alaska Representative Mary Peltola (D) to hear about what the lawmaker views as the harm state residents would suffer from Kroger’s (KR) proposed $24.6 billion acquisition of Albertsons (ACI), according to a congressional staffer. The two also...

Dec 12, 2023 Read Now >

Health Insurers Have Been Breaking State Laws for Years

This story was originally published by ProPublica. In North Carolina, lawmakers outraged that breast cancer patients were being denied reconstructive surgeries passed a measure forcing health insurers to pay for them. In Arizona, legislators intervened to protect patients with diabetes,...

Nov 16, 2023 Read Now >

Kroger/Albertsons: Proposed Deal Fix Could Suffer From Affiliate’s Reliance on Walmart

Kroger (KR) and Albertsons’ (ACI) attempt to win regulatory approval for their $24.6 billion merger by selling assets to C&S Wholesale Grocers may face a hurdle from an unusual quarter—a C&S affiliate that is beholden to the biggest U.S. supermarket player of them all, Walmart...

Nov 13, 2023 Read Now >

SAMR Investigates Patent-Licensing Practices in Auto Industry

China’s antitrust regulator is investigating potential antitrust violations regarding the licensing of vital communications technology patents to the country’s automakers, sources familiar with the situation said. The State Administration for Market Regulation launched the probe...

Nov 10, 2023 Read Now >

Kroger/Albertsons: California AG Says ‘Right Now, There’s Not a Lot of Reason Not to Sue’

This article has been updated with statements from spokespeople for Kroger and Albertsons. California Attorney General Rob Bonta is seriously considering a lawsuit against Kroger’s proposed acquisition of Albertsons, the AG said today at a press event in Washington, DC. “Right now,...

Oct 12, 2023 Read Now >

Novozymes/Chr. Hansen: Lengthy EC Pre-Notification Process Could Suggest Some Regulatory Obstacles

The proposed combination of Danish food ingredients makers Novozymes (NZYMB:DC) and Chr. Hansen (CHR:DC) has spurred a particularly lengthy pre-notification process with the European Commission, suggesting the transaction could encounter some regulatory obstacles, according to an analysis...

Oct 05, 2023 Read Now >

Kroger/Albertsons: Divestiture Deal Triggers Blowback from Unions Representing Store Workers

Kroger’s (KR) proposed acquisition of Albertsons’ (ACI) is generating new union objections over the selected buyer of stores the supermarket operators would divest in exchange for the $24.6 billion deal receiving FTC and states’ clearance. Earlier this month, C&S Wholesale...

Sep 14, 2023 Read Now >

Health Care Antitrust Weekly: FTC Eyes Improperly Listed Patents in Orange Book; New Illinois Law Expands Targets Health Care Provider Consolidation

FTC set to issue statement on improperly listed patents in FDA’s Orange Book. The commission will consider whether to issue a policy statement regarding patent listings in the Orange Book at an open meeting tomorrow. We highlighted a report on the impacts of patent gaming on inhaler...

Sep 13, 2023 Read Now >

FTC Could be Setting Up Coke and Pepsi as the Modern Textbook Cases of the Robinson-Patman Act, as the Agency Begins its Revival of the Long-Dormant Law

Experts say the FTC’s Robinson-Patman Act investigation into Coke (COKE) and Pepsi (PEP) could make for a shrewd first enforcement action, given the clear evidence of price discrimination by big soda against small retailers. The FTC is renewing enforcement of the 1936 anti-chain store...

Jun 29, 2023 Read Now >

Kroger/Albertsons: FTC Could Revive Depression-Era Law in Bid to Block Supermarket Merger

As Kroger (KR) and Albertsons (ACI) attempt to create the second-largest U.S. supermarket group after Walmart (WMT), the FTC is dusting off a Depression-era law aimed at curbing the power of large retail chains, suggesting that the long-dormant statute could play a role in a potential...

Jun 26, 2023 Read Now >

Kroger/Albertsons: Regional Grocers Sign NDAs in Talks to Buy Divested Stores, Sources Say

Grocers on the East Coast and in other U.S. regions have signed nondisclosure agreements to discuss potential purchases of Kroger (KR) and Albertsons (ACI) stores set to be divested as part of the supermarkets’ proposed $24.6 billion merger, according to two people familiar with the...

May 15, 2023 Read Now >

Kroger/Albertsons: FTC, State Reviews Home In on Deal Shrinking Pharmacy Options in Some Regions of the U.S.

Kroger’s (KR) plan to acquire rival grocer Albertsons (ACI) is raising concerns among FTC lawyers and state attorneys general about how the $24.6 billion deal would affect pharmacy services in certain U.S. regions, sources familiar with the matter said. Nationally, the companies control...

May 02, 2023 Read Now >

Healthcare Antitrust Weekly: Ohio AG Sues PBMs for Using “Rebate Aggregators” to Fix Prices; DOJ Decision Not to Litigate CVS/Signify Further Boosts Odds of Section 2 Investigation into U.S. Healthcare Behemoths

Ohio Attorney General Sues PBMs for Price Fixing. Ohio AG Dave Yost targeted PBMs’ strategy of hiding behind “rebate aggregating” pharmaceutical group purchasing organizations in a price-fixing lawsuit filed March 27. According to the complaint “Big Three” PBM Express Scripts,...

Apr 05, 2023 Read Now >

The Antitrust Agenda: With FTC Set to Have Two Open Republican Seats, Health of Senate Minority Leader McConnell Looms Large; Vedova Demands Compliance with HSR Form

Has McConnell’s absence from Senate delayed Republican FTC appointments? While antitrust enforcers made some headlines at the ABA Spring Meeting (see below for key remarks and highlights), the health of Senate Minority Leader Mitch McConnell was a subject of interest, as he is set to...

Apr 03, 2023 Read Now >

Assa Abloy/Spectrum Brands: Judge Grilled DOJ Litigator Over ‘Litigating the Fix’ Legal Standard; Case Still Comes Down to the Divestiture

At yesterday’s marathon hearing, U.S. District Judge Ana C. Reyes grilled DOJ litigator, Matthew Huppert, over the appropriate legal framework to apply to merger challenges involving a divestiture. Judge Reyes also indicated that DOJ’s challenge to Assa Abloy’s (ASSA-B:SS) bid for...

Mar 30, 2023 Read Now >

New Hard Beverage Products From Pepsi and Coke Threaten the Integrity of Alcohol’s Three-Tier System, Critics Warn; States and the TTB Are Set to Weigh in With Enforcement and New Rules as FTC Investigates Big Soda’s Relationship with Retailers

Consumers browsing the beer aisle will soon be confronted by a new product: Lipton Hard Iced Tea, the next big move by PepsiCo (PEP) to spin off a popular consumer product into the alcohol industry. It comes one year after Pepsi launched Hard Mtn Dew, a 5% alcohol version of Mountain...

Feb 13, 2023 Read Now >

Assa Abloy/Spectrum Brands: Judge Jackson Considers Following Judge Nichols Departure from Other D.C. District Judges’ ‘Litigating the Fix’ Burden Allocation

During last week’s hearing, D.C. District Court Judge Amy Berman Jackson indicated that she is considering following Judge Nichols departure from how other D.C. District Court judges have allocated the evidentiary burden for divestitures in DOJ’s challenge to block Assa Abloy’s...

Dec 15, 2022 Read Now >

Kroger/Albertsons: State Lawsuits Over Albertsons Dividend Could Complicate Potential FTC Litigation

State efforts to stop Albertsons (ACI) from issuing a $4 billion special dividend to shareholders ahead of its planned merger with rival supermarket Kroger (KR) could complicate a potential federal challenge of the deal itself.  The Washington, D.C., California, and Illinois attorneys...

Dec 07, 2022 Read Now >

The Antitrust Agenda: Republican Senators Take Aim at ESG Initiatives on Eve of Elections; Open Markets’ Lynn Says Attention on Amazon Following DOJ Win vs. Book Publisher Merger

GOP senators warn law firms about clients’ possible ESG antitrust violations. Senate Republicans warned law firms about “possible antitrust violations” that their “clients may commit if they pursue Environmental, Social and Governance (ESG) initiatives.” The firms and their...

Nov 07, 2022 Read Now >

Kroger/Albertsons: Companies Have Overlap of More Than 1,400 Stores; Khan Highly Critical of Failed Supermarket Divestitures

Kroger’s (KR) planned $24.6 billion acquisition of rival grocer Albertsons (ACI) would result in common control of more than 1,400 closely competing stores absent divestitures, according to a Capitol Forum analysis. Past reviews of grocery mergers by the FTC have centered on economic...

Nov 02, 2022 Read Now >

Assa Abloy/Spectrum Brands: The Merging Parties are Unlikely to Offer Divesture that Moves the Needle with DOJ

Assa Abloy (ASSA-B:SS) confirmed last week that the company has taken initial steps to sell its Emtek lock brand and smart residential business in the U.S. and Canada to oppose DOJ’s challenge to its $4.3 billion bid for the hardware and home improvement (HHI) division of Spectrum...

Oct 18, 2022 Read Now >

Healthcare Policy: DOJ Sues Cigna Over Medicare Advantage Risk Score Adjustments; Alleged Practices Similar to Those Uncovered in Reporting About Oak Street Health and Signify Health

Yesterday, the Department of Justice announced that it had filed a civil lawsuit against Cigna (CI) alleging that the insurer defrauded the Medicare Advantage program out of tens of millions of dollars. The allegations raised by the government are similar to those uncovered by The Capitol...

Oct 18, 2022 Read Now >

Continental Grain-Cargill/Sanderson Farms: DOJ Officials, Companies Negotiating Remedies to Safeguard Workers; Suit to Block Deal Still Possible

DOJ’s concerns about Cargill’s $4.5 billion joint venture with Continental Grain’s Wayne Farms to buy Sanderson Farms (SAFM) have spawned negotiations between senior department officials and the companies over remedies to safeguard wages and conditions post merger for poultry...

Jul 13, 2022 Read Now >

Poultry Price-Fixing Witnesses Were ‘Coerced’ Into Saying What DOJ Wanted to Hear, Defense Says

Witnesses against poultry executives charged with fixing prices and rigging bids for broiler chickens were coerced into saying what U.S. investigators wanted to hear, and the government’s star witness was a “liar,” defense attorneys told a jury in Denver on Thursday. FBI agents...

Feb 25, 2022 Read Now >

U.S. Poultry Executives Were ‘Cheating,’ Not Competing, DOJ Says as Price-Fixing Retrial Opens

Executives at poultry producers including Tyson Foods (TSN) and Pilgrim’s Pride (PPC) “weren’t competing, they were cheating,” a prosecutor told a jury in Denver on Wednesday, as the U.S. government opened its arguments in a retrial of 10 current and former managers charged with...

Feb 24, 2022 Read Now >

Continental Grain-Cargill/Sanderson Farms: Cargill Soybean Meal Position Draws DOJ Scrutiny, Third Party Complaints Over Local Market Concerns

DOJ staff attorneys are probing whether Cargill’s leading position in chicken feed ingredients would allow the company to harm rivals to its proposed $4.5 billion joint venture with Continental Grain to acquire Sanderson Farms (SAFM) by raising their costs or restricting their supply,...

Feb 24, 2022 Read Now >

For-Profit Colleges Under CFPB Scrutiny for Lending Practices; Experts Expect Data Sharing with Education Department

The Consumer Financial Protection Bureau is becoming a new threat to for-profit colleges as the regulator signaled last week that it will examine institutional practices around lending money to students and collecting on those loans. For-profit institutions that engage in...

Feb 01, 2022 Read Now >

Tim Wu Update on Alcohol Market Concerns Hints at Category Management as Potential Area of Interest

Tim Wu, a special assistant to the president for competition policy, at a recent town hall discussion organized by American Economic Liberties Project identified distribution and vertical integration in alcohol markets as problems that he hoped that an upcoming study and rulemaking from...

Dec 17, 2021 Read Now >

Treasury’s TTB Prioritizes Deregulation, Excludes Public Health Analysis in Request for Information, Providing First Glimpse at Coming Fight with FTC and DOJ Over Industry Study

President Joe Biden’s July 9 executive order on promoting competition took the alcohol industry by surprise when it singled out beer, wine and spirits as a candidate for new rulemakings, industry sources said. The order calls for the Secretary for Treasury, “in consultation with...

Nov 20, 2021 Read Now >

Amazon, Walmart in the Line of Fire as Biden Appointees Dust Off Robinson-Patman Act

Amazon (AMZN), Walmart (WMT) and other megaretailers could face renewed antitrust scrutiny and lawsuits under quiet moves by the Biden administration to resuscitate a Depression-era law meant to prevent large corporate buyers from purchasing goods at cheaper prices than smaller rivals...

Aug 24, 2021 Read Now >

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