The largest proposed grocery store merger in U.S. history is going through the courts.

On the one hand, there are the supermarket chains Kroger and Albertsons, who say their planned merger will help them compete against competitors like Costco. On the other side are the Federal Trade Commission’s antitrust authorities, who say the merger would Eliminate competition and food prices at a time of already high Food price inflation.

Starting Monday, a federal district judge in Portland, Oregon, will review both sides and decide whether to grant the FTC’s request for a preliminary injunction. A preliminary injunction would delay the merger while the FTC is conducting internal proceedings against the deal before an administrative judge.

Krogerbased in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands such as Ralph’sSmith’s and Harris Teeter. Albertsonsbased in Boise, Idaho, operates 2,273 stores in 34 states, including brands such as Safeway, Jewel Osco and Shaw’s. Together, the companies employ approximately 710,000 people.

Here’s what you should know ahead of the hearing, which is expected to last until September 13.

Why do Kroger and Albertsons want to merge?

Kroger and Albertsons – two of the largest grocery chains in the US – announced in October 2022 that they plan to merge. The companies say the $24.6 billion deal would keep prices low by giving them more leverage with suppliers and give them the opportunity to combine their own brands. They say a merger would also help them compete with major rivals like Walmartwhich currently controls about 22% of US grocery sales. Together, Kroger and Albertsons would control about 13%.

Why does the FTC want to block the merger?

Antitrust authorities say the planned merger would Eliminate competitionleading to higher prices, poorer quality and lower wages and social benefits for employees. In February, the FTC filed a lawsuit to block the merger before an FTC administrative law judge. At the same time, the FTC filed a lawsuit in federal court in Oregon seeking a preliminary injunction. The attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming joined the federal lawsuit.

Will Kroger and Albertsons close some stores if they merge?

They say no. If the merger is approved, Kroger and Albertsons will have agreed to sell 579 stores in places where their businesses overlap. The buyer would be C&S Wholesale Grocers, a New Hampshire-based supplier to independent supermarkets that also owns the private labels Grand Union and Piggly Wiggly. Kroger and Albertsons initially planned Kroger and Albertsons agreed to divest 413 stores in April, but the FTC said the plan would not have made C&S a strong competitor. Kroger and Albertsons agreed to divest more stores. Washington has the most stores to divest, 124, followed by Colorado with 91 and California with 63.

What happens if the judge in Oregon issues a temporary restraining order?

If the injunction is approved, Kroger and Albertsons will likely appeal in a higher court, said Mike Keeley, a partner and chairman at the Washington antitrust law firm Axinn, Veltrop & Harkrider. The case could then go through the FTC’s own judicial system, but because that can take a year or more, companies often abandon a deal before going through the process, Keeley said. Kroger sued the FTC this month, arguing that the agency’s internal procedures are unconstitutional and that it wants the merits of the merger to be decided in federal court. In that case, filed in Ohio, Kroger relied on a recent Supreme Court ruling This limited the Securities and Exchange Commission’s (SEC) authority to try some civil fraud cases internally rather than in court.

What happens if the Oregon judge rules with Kroger and Albertsons?

The FTC would likely appeal the ruling, but Keeley said it is rare for an appeals court to overturn a lower court’s ruling on a merger, so the FTC could decide to drop the challenge. The case could still go through the FTC’s administrative process. It is unclear what impact the presidential election might have on the case. The Biden administration has been particularly aggressive in challenging mergers it viewed as anticompetitive, but lawmakers from both parties expressed scepticism about the merger at a hearing in 2022.

If the Federal Court allows the merger, could state courts still prevent it?

Colorado And Washington have filed a separate lawsuit to the merger in state courts. That’s an unusual situation; usually the states are co-plaintiffs in a federal case. But both states believe the stakes are high. Colorado has more than 200 Kroger and Albertsons stores, while Washington has more than 300. Keeley said both states could seek their own injunctions in another court if the FTC loses, but it would be surprising if another court blocked the merger if Kroger and Albertsons were successful in the federal case.