The Federal Trade Commission has sued a wine distributor for discriminatory price cuts to big stores. This antitrust lawsuit is likely to harm not benefit US consumers.

The Federal Trade Commission is suing the largest U.S. distributor of wine and spirits for allegedly discriminating against small and independent businesses

Southern Glazer’s Wine & Spirits (Southern Glazer’s), the world's preeminent distributor of beverage alcohol, today issued the following statement in response to a lawsuit filed by the U.S. Federal Trade Commission (FTC) alleging violations of the Robinson-Patman Act (RPA).

Meanwhile, the FTC seeks a permanent injunction to prohibit Southern Glazer’s from engaging in further alleged price discrimination, and to ensure small retailers gain equitable access to discounts and rebates. The agency argues this will preserve competition, protect consumer choice and potentially lead to lower prices.

The Federal Trade Commission claims Miami-based Southern Glazer’s Wine and Spirits illegally discriminates against small and independent businesses by not giving them access to discounts and rebates that larger chains receive.

The federal agency has claimed the distributor has been "depriving" smaller retailers of lower prices and rebates.