By Dillon Denio and Karen Alexander
The office of California Attorney General Rob Bonta recently suggested in an interview with the online publication MLex that his office believes that further consolidation in markets that are “core” to American life—including the financial sector and the agriculture, airline, and grocery industries—does not serve the economy, consumers, or competition well.
The comments align with the California Attorneys General’s Office’s recent opposition to mergers and joint ventures in the airline and grocery industries. In 2021, California joined the Department of Justice’s (DOJ) successful lawsuit to prevent American Airlines and JetBlue Airways from consolidating their operations in Boston and New York City. In early 2024, California, along with six other state attorneys general, joined the DOJ’s lawsuit to prevent the $3.8 billion acquisition by JetBlue of Spirit Airlines. And in 2024, California was among the several states that joined the Federal Trade Commission’s (FTC) lawsuit to block the proposed merger between grocery giants Kroger and Albertsons.
The Attorney General’s comments and recent actions show California’s continuing opposition to mergers in the financial sector and the agriculture, airline, and grocery industries. Businesses in these “core” markets looking to consolidate with competitors should be aware that California’s Attorney General’s Office may challenge the deal.