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$25-billion Kroger-Albertsons merger plan is blocked by federal judge

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-billion Kroger-Albertsons merger plan is blocked by federal judge

Kroger’s plans to buy its grocery rival Albertsons hit a major roadblock Tuesday, when a federal judge put a halt to the deal, which would be the largest supermarket merger in U.S. history.

The decision is a blow to Albertsons and Kroger, which announced plans for the $24.6-billion acquisition of its rival in 2022.

The Federal Trade Commission, California and several other states had sued to stop the deal, arguing the merger would decimate competition in many parts of the country and leave customers at the mercy of a newly formed behemoth that could drive up prices.

“This historic win protects millions of Americans across the country from higher prices for essential groceries—from milk, to bread, to eggs—ultimately allowing consumers to keep more money in their pockets,” said Henry Liu, the FTC’s Bureau of Competition director, in a statement.

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The decision by U.S. District Judge Adrienne Nelson in Oregon to issue a preliminary injunction in the case means the two companies cannot proceed with their merger and will have to make their case again before the Federal Trade Commission, which will conduct an in-house proceeding on the proposed deal before an administrative law judge.

“Any harms defendants experience as a result of the injunction do not overcome the strong public interest in the enforcement of antitrust law,” Nelson wrote in her 71-page decision.

Representatives of Kroger and Albertsons said they’re reviewing their options and are “disappointed” by the ruling. A spokesperson for Kroger added that the merger “is in the best interests of customers, associates, and the broader competitive environment in a rapidly evolving grocery landscape.”

The ruling comes after a three-week hearing that started in late August in a federal courtroom in Oregon and featured the grocery store chains’ executives, FTC lawyers, union leaders and antitrust experts. The high-stakes court battle centered on concerns that the mega-merger would add to the financial woes of consumers who have grappled with the rising cost of food.

The case garnered particular attention as it touched on hot-button issues of rising food prices and labor rights during a tight U.S. presidential race in which Donald Trump hammered Vice President Kamala Harris on people’s dissatisfaction with the economy.

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In October, Albertsons agreed to pay nearly $4 million to settle a civil law enforcement complaint that alleged the company overcharged customers for groceries and lied about the weight of some products.

Kroger and Albertsons executives have defended their decision to merge, saying in court that joining forces would help them compete with big retailers such as Walmart, Costco and Amazon. Kroger Chief Executive Rodney McMullen told the courtroom that the grocery chains planned to lower grocery prices after the merger. The supermarket chains say they’ve kept their gross profit margins low as part of their efforts to lower prices and will reduce the disparity between the grocery prices at Kroger and Albertsons.

The judge, though, said in her ruling that courts should be skeptical of promises that can’t be enforced, noting that “business realities” might force the grocery chains to alter whether they follow through on their vows to lower prices.

The federal government also made the case that supermarkets are different than other retailers because people go to these stores to buy groceries in a single visit. Costco, for example, requires membership, has bulk packages and lacks services offered in grocery chains like Kroger and Albertsons.

“It is not surprising that consumers spend money at a variety of different types of retailers, but this does not necessarily show that those retailers are reasonably interchangeable substitutes for a consumer’s particular needs,” the judge wrote.

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To address concerns that reduced competition would lead to higher grocery store prices, Kroger and Albertsons have proposed selling 579 stores to another company, C&S Wholesale Grocers. That includes 63 stores in California, mainly in Southern California. After hearing testimony from experts, however, the judge wasn’t swayed.

U.S. regulators argued that the merger would hurt consumers. In its lawsuit filed in February, the FTC alleged that a lack of competition would lead to higher grocery prices, reduce food quality and customer service and harm grocery workers who are pushing for better working conditions and wages. Because Kroger and Albertsons are rivals, they compete with one another for workers and will price-match competitors.

Nelson said it was “plausible” that the merger would reduce competition for union grocery store labor, but noted there’s “no economic modeling of how wages, benefits, and other compensation might change as a result of changes in bargaining power.”

Acquisitions have fueled Kroger’s and Albertsons’ growth. Albertsons owns the well-known brands Pavilions, Safeway and Vons. Kroger operates Ralphs, Food4Less, Fred Meyer, Fry’s, Quality Food Centers and other popular grocery stores. If the merger ultimately goes through, the two supermarket chains would operate more than 5,000 stores in 48 states, the FTC said in the lawsuit.

The competition among grocery stores has been intensifying. Nationwide, Walmart is the most popular retailer, according to consumer data company Numerator. On the West Coast, Costco is the most popular retailer, followed by Walmart, Albertsons, Kroger, Amazon and Target.

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Whether shoppers would see their grocery prices rise or fall was a complicated question for the court because a variety of forces can affect food prices. Those factors include competition, the costs of ingredients, worker wages, management efficiency and disease outbreaks.

Some experts say the effect the merger would have on grocery prices could depend on where a shopper lives. Some grocery mergers in major cities with a lot of competition such as San Francisco and New York have led to lower prices. In cities with less competition such as Topeka, Kan., grocery store mergers have resulted in higher prices. Economists have also found that sometimes a merger results in relatively little change in prices.

Siding with economic analysis provided by the federal government’s expert, Nelson noted the proposed merger is “presumptively unlawful.”

“Plaintiff’s analysis is persuasive and shows that the loss of head-to-head competition will incentivize price increases in many markets,” she wrote.

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In a first for the country, voters in Monterey Park ban data centers

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In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

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That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

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“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

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“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

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Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

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Rent-hike ban to protect fire victims ends despite gouging concerns

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Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

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Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

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“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

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A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

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Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

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Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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