Whole Foods Market, national purveyors of organic and natural grocery goods, is in the process of acquiring Wild Oats, another national and natural grocer.  The over half a billion dollar deal was moving along as planned until the Federal Trade Commission threw a wrench in the works.  Citing antitrust law infringement, the FTC has filed a complaint against the proposed merger on the grounds that such a union would eliminate substantial competition in the premium natural and organic marketplace.

I never thought that I would so emphatically object to the FTC taking issue with the further consolidation of big business; large corporations often have the majority market share over the smaller players and I like to see these businesses have a chance too - this is America after all.  However, this complaint is incredibly unjust.  The FTC is limiting the natural and organic marketplace by failing to acknowledge the substantial competition that Whole Foods and Wild Oats face from the mainstream grocery market, which continues to add organic lines to their offerings.  The complaint not only ignores and skews this real competition, but it also comes before many more pressing antitrust infringement priorities that exist in this country.  Have they ever heard of Wal-Mart?  Economists and business analysts are left dumbfounded: why is the FTC wasting its time with this?

I am not prone to conspiracy theorizing.  With the attention that this government agency is giving to hindering these thriving businesses and the people's tax dollars that it is taking to do so, I am outraged with the obvious bias that is underway here.  There are associations for every industry in the country and I am sure that there is one for the mainstream grocers out there that has a fulltime staff of lobbyists  political pushers working to ensure that this progressive and successful competitor, Whole Foods, is thrown every barrier possible to entry in the larger grocer marketplace.

My ire stems less from my love of big business (I work at GladRags after all) and more from a desire to see people play fair.  The FTC has set the rules and they should follow them.  They are being preferential and discriminatory and their boldness is shameless.

For some wonderfully elucidating articles, check out the links below.

- Diana

http://www.fool.com/investing/general/2007/06/06/is-whole-foods-building-an-evil-empire.aspx
http://retail.seekingalpha.com/article/37547?source=feed
http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20070605-000643-1522
http://www.ftc.gov/opa/2007/06/wholefoods.shtm