The FTC, joined by eight states and the District of Columbia, is suing to block the $24.6 billion Kroger-Albertsons merger.

The lawsuit expresses concerns about possible higher food prices and reduced wages for grocery workers.

Kroger defends the merger, claiming it would lead to lower prices and more choices for consumers.

The lawsuit's outcome is poised to significantly influence the grocery sector and competitive dynamics with larger retailers.

The anticipated merger completion has been delayed, now expected in the first half of Kroger's fiscal year ending August 17.

Kroger's share value dropped 1.72% after the lawsuit announcement, signaling investor worries about the merger's impact on food prices and market competition.

This legal challenge is part of a wider regulatory scrutiny on major mergers, similar to the recent actions against the Microsoft-Activision deal.