The US Federal Trade Commission (FTC) has sued convenience store chain 7-Eleven and its parent company – Japan’s Seven & I Holdings Co – for anticompetitive acquisition.

The FTC alleged the chain failed to provide prior notice before acquiring a fuel outlet in St Petersburg, Florida.

The acquisition was anticompetitive and likely allowed 7-Eleven to charge higher fuel prices at nearby locations, the commission said, adding it is seeking a maximum penalty of more than $77 million.

7-Eleven and its parent company agreed to the FTC’s consent order in 2018 related to its $3.3 billion acquisition of more than 1000 retail fuel outlets from fuel distributor Sunoco. 

The order, designed to prevent anticompetitive acquisitions that could lead to higher retail fuel prices, prohibited 7-Eleven from acquiring Sunoco fuel outlets in several local markets, including those surrounding the St Petersburg location.

“7-Eleven’s acquisition of the St Petersburg outlet was an undisputed violation of the 2018 consent order since this location was specifically listed as an outlet that could not be acquired without first providing prior notice to the FTC,” the watchdog elaborated.

“7-Eleven submitted false compliance reports to the FTC related to this acquisition,” it added.

Seven & I said in a statement that it voluntarily reported to the FTC after the incident came to light and seeks a prompt and fair settlement, according to Kyodo News.

Further reading, 7-Eleven opened its first store in Laos.