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McDonald's is suing several meat companies, accusing them of conspiring to raise the price of beef, among other things.
The fast-food giant filed a federal complaint Friday against Tyson, JBS, Cargill, National Beef Packing Company and its subsidiaries, accusing the companies of engaging in a beef price-fixing scheme.
Meat companies have been accused of anti-competitive measures, including collectively restricting supply and charging “unlawful” amounts to raise prices, according to reports. Associated Press.
The suspicion of collusion has turned the beef market into a “monopoly market where direct buyers are forced to buy at a specified price.'' [the meat packers],” the complaint said, adding that the harm the company suffered as a buyer was “what antitrust laws were designed to prevent.”
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McDonald's is suing several meat companies, accusing them of conspiring to raise the price of beef, among other things. (Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
McDonald's alleges that the meat packers began colluding at least as early as January 2015 and that the collusion continues. The suit alleges the meat companies violated a federal antitrust law known as the Sherman Act.
Both companies have previously faced federal investigations and allegations of price-fixing.
Various lawsuits have been filed over the years by grocers, ranchers, restaurants, and wholesalers. Meat packers and processors have previously settled cases, although some cases are still pending.
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McDonald's McDouble cheeseburger, small fries, 4 piece chicken nuggets and a small soft drink prepared on Monday, June 17, 2024 in New York, USA. On June 25, McDonald's launched a marketing campaign and new $5 meal deal. , increase your stake (Lucia Briccelli/Bloomberg via Getty Images/Getty Images)
In 2022, JBS agreed to a $52.5 million settlement in a similar beef price fixing lawsuit. A year earlier, Tyson agreed to pay $221.5 million to settle a class-action lawsuit that accused the company of intentionally inflating chicken prices.
These settlements did not include any admission of wrongdoing.
Meat processors have long argued that uncontrollable supply and demand factors are responsible for the price increases, and that they have not engaged in anticompetitive behavior. For example, meat processing plants were sometimes closed during the height of the COVID-19 pandemic, and the industry also faced labor shortages that worsened during the pandemic.
Meat products, rib steaks, ribs and chuck pieces are seen being sold at a stall at the Victor Hugo market in downtown Toulouse on December 27, 2014. (Remy Gabarda/AFP via Getty Images/Getty Images)
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However, lawsuits such as this one brought by McDonald's allege that overall market concentration is a contributing factor to the collusion, citing increased profit margins during the period of the alleged collusion.
“Conspiracies are easier to organize and sustain when a small number of companies control a large portion of a market,” the McDonald's lawsuit states.
According to the complaint, recent data shows that Tyson, JBS, Cargill and National Beef control more than 80% of the total U.S. beef market.
McDonald's is seeking a jury trial.
The Associated Press contributed to this report.
