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The Morning Risk Report: FTC Sues to Block $25 Billion Kroger-Albertsons Merger
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Good morning. The Federal Trade Commission on Monday sued to block Kroger’s $25 billion bid for rival Albertsons, throwing into uncertainty the fate of one of the largest supermarket deals in history.
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Anticompetitive deal? In a lawsuit, the FTC said the deal would lead to higher food prices and harm union workers’ bargaining power, and asked a court to block the companies from closing their deal on antitrust grounds. The commission said that the companies’ plan to address the government’s concerns by selling hundreds of stores won’t solve the problem.
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Ongoing antitrust war: The suit sets up another battle for U.S. antitrust enforcers. Under the Biden administration, the FTC and the Justice Department have challenged megadeals ranging from Microsoft’s bid for Activision Blizzard to JetBlue’s attempted takeover of Spirit Airlines. The FTC and DOJ have a mixed record fighting mergers.
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Expensive meals: The FTC’s challenge comes as the portion of Americans’ income spent on food has reached a three-decade high, despite inflation easing for many other goods. President Biden, who is running for re-election, took aim at large grocery chains in January over high food prices, saying that stores are gouging shoppers and bringing in excess profits.
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2024 Risk & Compliance Survey
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We invite readers to take part in our 2024 Risk & Compliance Survey. It will only take a few moments of your time, and your insights will inform industry trends and enhance our community knowledge. We hope to present aggregated results in a future edition of Risk & Compliance Journal.
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Content from: DELOITTE
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Legal Counsel: Navigating the Risks of AI
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Legal teams are increasingly employing AI to boost efficiency and lower costs, but it’s important for organizations to identify the risks involved and put a framework in place to govern them. Keep Reading ›
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Boeing’s manufacturing plant in Renton, Wash. PHOTO: DAVID RYDER/BLOOMBERG NEWS
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Boeing efforts to improve safety fall short, FAA panel says.
Boeing's push to improve its safety culture after two 737 MAX crashes is falling short, according to a panel tasked with reviewing the plane maker’s practices following the accidents.
The independent panel established by the Federal Aviation Administration found a disconnect between Boeing’s senior management and others at the company over safety matters. A panel report issued on Monday also cited insufficient safeguards to prevent retaliation against employees who flag safety issues.
The January blowout of a door plug on an Alaska Airlines 737 MAX 9 occurred as the panel was finishing its report.
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The Supreme Court sounded dubious of state laws requiring online platforms such as Facebook and YouTube to publish nearly all user content, although several justices suggested that the ability to remove noxious social-media posts should not mean tech companies are free to block personal communications such as Gmail or chat messages.
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Lawyers for Donald Trump appealed a New York judge’s order requiring the former president to pay $355 million plus interest in a civil-fraud case that has put the future of his real-estate business at risk.
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The U.K.’s competition regulator said it has launched an investigation into whether eight housebuilders have shared commercially sensitive information with their competitors.
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$41.7 Million
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The amount that Family Dollar Stores agreed to pay after U.S. investigators discovered a rodent infestation in an Arkansas distribution center. The U.S. Justice Department said that is the largest ever penalty in a criminal food safety case.
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President Biden has made it a priority to get billions of dollars in fresh aid to Ukraine. PHOTO: CHIP SOMODEVILLA/GETTY IMAGES
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Biden calls leaders to White House as shutdown looms.
President Biden is calling congressional leaders to the White House as the clock ticks toward a partial government shutdown Friday night and a Ukraine aid package remains stuck.
The president has called the meeting for Tuesday, seeking to break a logjam. House and Senate leaders have been working to negotiate the details of 12 funding bills totaling $1.6 trillion for federal agencies, which have been operating on temporary extensions since Sept. 30. Money is scheduled to run out for the U.S. Environmental Protection Agency, Justice Department, Defense Department and remaining agencies after March 8.
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Iran reduced its stockpile of near-weapons-grade nuclear material even as it continued expanding its overall nuclear program, the United Nations’ atomic watchdog said Monday, marking a surprise step that could ease tensions with Washington.
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When Sweden joins NATO as soon as this week, the alliance will gain a solidly anti-Russian member with a robust military that provides critical defense of Europe’s northern flank.
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“ESG issues are increasingly material to investors. It is therefore crucial that when companies speak about the host of issues that may fall under the rubric of ESG – whether climate, social, corporate governance or others – they do so in a way that’s not materially false or misleading.”
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— Securities and Exchange Commission Enforcement Director Gurbir Grewal
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Russian opposition leader Alexei Navalny’s death in an Arctic penal colony followed a proposal to trade him and two unnamed American citizens held by Moscow for a Russian hit man imprisoned in Germany, Navalny’s foundation said Monday.
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A 9-month-old AI startup led by 31-year-old CEO Arthur Mensch is challenging the giants of Silicon Valley.
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The case against Alexander Smirnov, the former FBI informant accused of peddling false bribery allegations against President Biden and his son Hunter Biden, gets stranger by the day.
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Is an 8 a.m. meeting ever OK? Debates over the time slot have flared up in the never-ending discussion around work culture.
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