The Federal Trade Commission announced on Monday that they had unanimously approved the final order resolving alleged anticompetitive conduct in New York and Vermont among supermarket operators. The charges came after the Golub Corporation and Tops Market Corporation announced their intent to merge, a merger which would result in the new company controlling nearly 300 supermarkets spanning across six states.
The previous charges claimed that the merger of the Golub Corporation (who owns the Price Chopper supermarket chain) and Tops Market Corporation would constitute anticompetitive conduct in 11 local markets spanning from New York State to Vermont. The initial complaint cited the proposed merger would violate both the Clayton Act as well as the FTC Act. It argued that the merger would result in a highly concentrated grocery sale market.
Specifically, the complaint asserted that the ultimate effect of the merger would be “to increase the likelihood that the prices of food or groceries will increase, and that the quality and selection of food, groceries, or services will decrease, in the relevant geographic markets.”
The terms of the settlement require Tops Market Corporation and the Golub Corporation to divest 12 of their supermarkets to C&S Wholesale Grocers. However, if C&S plans to sell any markets they acquire in the divestiture, they must gain approval first from the FTC. Additionally, each supermarket operator divesting markets must communicate with the FTC and obtain their approval prior to “selling or acquiring supermarkets in the affected markets.” The supermarket operators are set to divest one supermarket in each local market mentioned in the complaint, with the exception of two in the Watertown community.
