The Washington Post reports:

Antitrust enforcers at the Federal Trade Commission squared off yesterday against lawyers for Austin-based Whole Foods in a second and final day of arguments before U.S. District Judge Paul Friedman. In the judge’s hands rests the fate of Whole Foods’ pending $565 million purchase of Boulder, Colo., rival Wild Oats. FTC lawyers sued in June to block the deal, arguing that it will lead to less competition in what they call “the premium and organic” supermarket sector. The FTC maintains that the purchase by Whole Foods will increase prices and reduce quality and service in as many as 25 markets across the United States, including Washington, because it expects the combined company to shutter several Wild Oats stores and back away from plans to open many new ones. “Consumers are unquestionably better off if there is vigorous competition,” FTC lawyer Michael J. Bloom told the judge. “This transaction deprives consumers of choice. That is unambiguously anticompetitive.” Company officials say the government’s analysis is “fatally flawed” and ignores efforts by such rivals as Safeway, Wegmans, Harris Teeter and Trader Joe’s to stock their shelves with high-quality vegetables, baked goods and prepared meals to meet growing consumer demand. Moreover, Whole Foods lawyers argue, the merger would not raise prices across the board because Wild Oats stores already charge more than their rivals. The deal “is not going to alter Whole Foods prices in any way,” company lawyer Paul T. Denis said yesterday. “Whole Foods prices are lower than Wild Oats prices.” The judge is expected to issue a ruling in the next few weeks. Based on turnout over two days of oral argument this week, the decision will be hotly anticipated. So many lawyers, market analysts and reporters stuffed the courtroom that officials opened an overflow room with an audio feed.

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