ARTICLE
9 October 2023

DOJ Sues Pork And Poultry Industry Data Exchange Service

M
MoginRubin

Contributor

MoginRubin is a leading antitrust and competition law firm prepared to meet today’s demanding challenges in litigation, strategic counseling, and policy advocacy. Our legal and economic expertise, built by litigating some of the nation’s landmark cases, means our clients get the clarity, focus, and commitment they need when faced with legal issues.
DOJ: Enabling competitive information swapping harms competition in this concentrated market. Citing the harm it causes consumers and grocery stores...
United States Antitrust/Competition Law
To print this article, all you need is to be registered or login on Mondaq.com.

DOJ: Enabling competitive information swapping harms competition in this concentrated market.

Citing the harm it causes consumers and grocery stores, the Justice Department's Antitrust Division sued Agri Stats Inc. on Sept. 28 for organizing and managing anticompetitive information exchanges among broiler chicken, pork, and turkey processors. The suit –- part of the DOJ's long-running focus on this industry -– was filed in federal court for the District of Minnesota.

The company has been producing regular reports to competing meat processors based on its collection and integration of data relating to prices, wages, farmer compensation, general costs, and production information. The companies use the data to set prices and output levels, conduct that violates Section 1 of the Sherman Act, the DOJ charges.

According to the complaint:

  • Participating processors accounted for more than 90% of U.S. broiler chicken sales, 80% of pork sales, and 90% of turkey sales.
  • In some cases, Agri Stats encourages price increases and reduction in meat supplies.
  • Agri Stats withholds the data it collects from purchasers, workers, and consumers.
  • Private litigation motivated Agri Stats to pause its reports on turkey and pork production, but intends to resume this activity when the cases end.

See our previous commentary and news posts on antitrust actions targeting the pork, poultry, and beef industries:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More