SGWS, FTC Near Accord in Antitrust Case

Southern Glazer's Wine & Spirits and the Federal Trade Commission are nearing a settlement in the FTC's antitrust case against the nation's largest bev/al wholesaler.

The federal district judge overseeing the case granted their joint request to put a 45-day stay on the case to give them time to hopefully reach an agreement.

The FTC had sued SGWS alleging price discounts it gave large retailers such as Walmart and Costco violated the Robinson-Patman Act under which it is generally illegal for sellters to charge higher prices to one seller than to another. The FTC said this was anti-competitive and unlawful price discrimination.

SGWS had said it "strongly disputes the FTC's allegations and will vigorously defend itself." It also described the Wright-Patman Act as “a Depression-era federal antitrust law that has not been enforced in decades because of bipartisan concern that enforcement leads to higher prices for consumers.”

For roughly 40 years until the Biden Administration, antitrust enforcers focused on the effect of mergers and other corporate actions on consumers. But beginning with the Biden Administration and continuing into the Trump Administration the focus has shifted back toward – at least in some instances – protecting competitors' ability to compete, even if that means somewhat higher prices for consumers.