The Federal Trade Commission (FTC) sued to block the proposed $24.6 billion merger of Kroger and Albertsons, alleging that the deal is anticompetitive.

The deal has faced fierce pushback from the government over concerns that it would lead to higher prices and lower-quality goods for millions of Americans. 

"Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today," said Henry Liu, director of the FTC’s Bureau of Competition.

Liu further argued that "workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating."

The deal would mark the largest proposed supermarket merger in U.S. history. If the chains merged, the companies would operate more than 5,000 stores and approximately 4,000 retail pharmacies and would employ nearly 700,000 employees across 48 states.

FOX Business reached out to Kroger for comment. 

This is a developing story. Check back for updates.