McDonald’s sues major beef producers in US price-fixing lawsuit
NEW YORK (AP) — McDonald’s has some beef with today’s largest meat packers.
The fast food giant is suing the U.S. meat industry’s “Big Four” — Tyson, JBS, Cargill and National Beef Packing Company — and their subsidiaries, alleging a price fixing scheme for beef specifically. In a federal complaint, filed Friday in New York, McDonald’s accused the companies of anticompetitive measures such as collectively limiting supply to boost prices and charge “illegally inflated” amounts.
This collusion caused the beef market to become “a monopoly in which direct purchasers were forced to buy at prices dictated by (the meat packers),” McDonald’s suit reads — later noting that the injury it has sustained as one of those buyers is what “antitrust laws were designed to prevent.”
McDonald’s alleges that the meat packers’ conspiracy dates back nearly a decade, at least as early as January 2015, and continues today. Its suit argues these companies’ actions violate the Sherman Act, a federal antitrust law.
“Conspiracies are easier to organize and sustain when only a few firms control a large share of the market,” McDonald’s suit reads. Data from recent years has showed that Tyson, JBS, Cargill and National Beef control more than 80% of the U.S. beef market combined, the suit notes.
McDonald’s is seeking a trial by jury. The Chicago-based chain, which did not immediately respond to a request for further comment Tuesday, has more than 39,000 locations across over 100 countries worldwide, including about 13,000 in the U.S. The vast majority are franchised.
Wyatte Grantham-Philips | AP News
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