The proposed merger of Kroger and Albertsons would appear to be exactly the kind of combination of mega-corporations that the U.S. antitrust regulations are designed to combat.  The scale of the transaction is massive. Kroger has offered to buy Albertsons for $24.6 billion. If the deal is blocked by antitrust regulations, Kroger will pay a $600 million breakup fee to Albertsons.   

On its face, one would think that the combination of 2nd largest and 4th largest grocery chains in the U.S. would certainly give rise to competition concerns. They would undoubtedly gain a competitive advantage.  However, the arguments in favor of the merger point out that there are already mega-corporations like Amazon and Walmart that have a large share of the grocery market and this combination is necessary to keep up with them.  

Is this merger needed in order to remain competitive in a market saturated with major corporate players? Are huge businesses like Amazon and Walmart changing the scale of what is considered to be dominant versus what is merely competitive in the market?  These are some of the questions the FTC will need to consider when weighing whether to allow this merger to proceed and what shape it might take.