AG overreach on groceries’ merger

One of the reasons this editorial board supported Rob Bonta for state attorney general was his fair-minded and restrained approach toward the administration of justice — and his determination to focus on legitimate issues such as improving police accountability. Unfortunately, his office has recently stepped outside its bounds.

Bonta has joined with attorneys general from Illinois and Washington, D.C., in filing a federal court motion designed to stop the Albertsons grocery chain from paying a dividend to its stockholders prior to its merger with Kroger. Attorneys general have broad powers, but weighing in on legitimate corporate decisions is an abuse of power.

“Right now, Albertsons seems more concerned with prematurely putting cash back into the hands of its shareholders than protecting consumers’ access to fresh and affordable food, and frankly, I find that more than a little alarming,” Bonta said in a statement. The AG’s office claims that the special dividend will hamper the company’s ability to compete.

Private firms are perfectly capable of handling their own dividend and cash-flow decisions without such meddling. Referring to a similar Washington state lawsuit, the company said the action is “provides no legal basis for canceling or postponing a dividend that has been duly and unanimously approved by Albertsons Cos.’ fully informed Board of Directors.”

State attorneys general often take an overly broad approach to antitrust law – and launch attention-seeking lawsuits designed to portray themselves as consumer protectors. Bonta’s office is concerned about food prices, but there’s abundant competition among grocery stores.

Instead of meddling in the marketplace, Bonta needs to focus his attention on issues that plague his own office. For instance, CALmatters reported last month that his office has failed to fulfill its duty to provide independent oversight of police shootings in keeping with a new state law.

Bonta blamed a shortage of funding and agents for the backlog, yet his department apparently has the resources to file lawsuits against grocery chains that are engaged in normal day-to-day business. We have hopes for his administration, but urge him to focus on the basics.