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Filing Shows Judge Sees Broad Market for Organics

The Federal Trade Commission failed to prove that a separate market exists for “premium natural and organic supermarkets” in its antitrust case against the acquisition of Wild Oats by Whole Foods, according to the public version of the judge’s opinion in the denying a preliminary injunction.

WASHINGTON — The Federal Trade Commission failed to prove that a separate market exists for “premium natural and organic supermarkets” in its antitrust case against the acquisition of Wild Oats by Whole Foods, according to the public version of the judge’s opinion in the denying a preliminary injunction. The opinion was made public yesterday. The judge sided with the chains in concluding that Whole Foods and Wild Oats increasingly compete with a variety of traditional supermarkets that offer premium, organic and natural products, and that the elimination of Wild Oats from the market would not be enough to allow Whole Foods to raise prices. “[The judge’s] opinion clearly communicates why the realities of the marketplace, particularly the behavior of consumers and supermarket chains across the country, compel the conclusion that this merger will not lead to any anticompetitive effects,” said Paul Denis, lead litigation counsel for Whole Foods Market, and partner at Dechert LLP, in a prepared statement. The FTC is seeking an appeal of the judge’s decision.

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