The FTC is taking legal action to block the $4 billion merger between Tempur Sealy and Mattress Firm, citing concerns about competition. The deal would have seen Tempur Sealy acquire Mattress Firm and its 2,300 stores, creating a combined entity with 3,000 stores worldwide. The FTC alleges that the merger would stifle competition, leading to higher prices and lower quality. Mattress Firm argues that the merger would benefit consumers and the industry. Tempur Sealy, disappointed by the FTC's decision, believes the merger would bring benefits to all stakeholders. The bedding industry is described as highly competitive, with consumers having a variety of products and purchasing channels. The case highlights the importance of maintaining competition in the market to ensure consumer choice and fair pricing.