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Southern Glazer’s, FTC Seek Pause in Price Discrimination Case as Settlement Talks Advance

By  |  June 21, 2026
Southern Glazer’s, FTC Seek Pause in Price Discrimination Case as Settlement Talks Advance

Southern Glazer’s Wine & Spirits and the Federal Trade Commission have asked a federal court to temporarily halt litigation in a closely watched antitrust case while the parties pursue a potential settlement over allegations of unlawful price discrimination.

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    According to Bloomberg Law, the parties jointly requested a 45-day pause in proceedings in the U.S. District Court for the Central District of California after reaching an agreement to explore a resolution of the dispute. The lawsuit, filed by the FTC in December 2024, alleges that Southern Glazer’s provided more favorable pricing, discounts and promotional benefits to large retail chains than to smaller independent retailers.

    The case has become one of the most prominent examples of the FTC’s renewed use of the Robinson-Patman Act, a federal law that prohibits certain forms of price discrimination that may harm competition. The agency claims Southern Glazer’s pricing practices placed smaller retailers at a competitive disadvantage by limiting their access to discounts and rebates available to larger customers.

    Southern Glazer’s, the nation’s largest wine and spirits distributor, has denied wrongdoing and previously argued that its pricing practices comply with federal law. The company has maintained that differences in pricing can reflect legitimate business considerations, including volume-related efficiencies and other competitive factors.

    The litigation has drawn significant attention from antitrust practitioners because it represents part of a broader effort by regulators to revive enforcement of the Robinson-Patman Act after decades of limited activity. The FTC contends that discriminatory pricing can distort competition by favoring large national chains over independent businesses, while opponents of aggressive enforcement have questioned whether such cases demonstrate harm to competition under modern antitrust standards.

    The Southern Glazer’s lawsuit survived an early challenge in April 2025 when a federal judge declined to dismiss the FTC’s claims, allowing the case to proceed toward discovery and further litigation.

    According to Bloomberg Law, the newly requested stay would give both sides time to negotiate a potential settlement before continuing with court proceedings. If an agreement is reached, it could resolve one of the FTC’s highest-profile price discrimination cases in recent years.

    Source: Bloomberg Law