The US Federal Trade Commission (FTC) reportedly has filed a motion with the U.S. Court of Appeals for the District of Columbia Circuit, asking it to undo the recent acquisition of Wild Oats by Whole Foods. The FTC is arguing that its filing is not moot because undoing the merger would, in fact, be a way to protect consumers from what it sees as the anti-competitive nature of the acquisition.
The FTC already has been rebuffed by the courts in its attempt to stop the $565 million acquisition, increased Whole Foods 307-unit fleet by 110 stores. The judge in the case said that there remains ample competition in the natural/organic retailing sector, and that there is no evidence that consumers will be harmed by the merger.
The FTC already has been rebuffed by the courts in its attempt to stop the $565 million acquisition, increased Whole Foods 307-unit fleet by 110 stores. The judge in the case said that there remains ample competition in the natural/organic retailing sector, and that there is no evidence that consumers will be harmed by the merger.
- KC's View:
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I didn’t know that the FTC had a department charged with putting toothpaste back into the tube. But I guess it does.
The FTC lost, and it should simply back off this case, which it was wrong to bring in the first place.
In my view, it should instead focus on News Corp.’s efforts to buy the Wall Street Journal, which will be a lot more harmful to journalistic competition – not to mention public discourse.
