McDonald’s Sues Meat Distributors, Alleging Price Fixing in Beef Market
October 9, 2024 – McDonald’s has filed a lawsuit against several major meat processing companies, including industry giants Cargill, JBS, and Tyson Foods.
The fast-food chain alleges that these meatpackers have engaged in a conspiracy since 2015 to limit beef supply, leading to inflated prices.
McDonald’s claims that the distributors “engaged in a contract, combination, or conspiracy” to reduce beef output, artificially driving prices higher than they would have been in a competitive market.
In 2018, the top four companies being sued reportedly controlled 80% of the U.S. beef market, according to McDonald’s.
These accusations follow a trend of legal challenges within the beef industry, as other retailers and consumers have also sued meat manufacturers for violating antitrust laws.
“Only colluding meatpackers would expect to benefit by reducing their prices and purchases of slaughtered cattle, fully aware that their conspiracy would shield them from the pressures of a competitive market,” the lawsuit alleges.
McDonald’s asserts that by reducing output and underpaying suppliers, these companies were able to boost their profit margins.
McDonald’s is not alone in its legal pursuit. Similar antitrust complaints from retailers such as BJ’s Wholesale, Target, and Aldi have been consolidated under a Minnesota federal court.
While some settlements have been reached—JBS paid $52.5 million in 2022 to resolve a class action lawsuit—many of these cases continue to unfold.
This lawsuit also arrives during a challenging time for McDonald’s, as inflation has taken a toll on sales, and protests over geopolitical events have affected its business.
CEO Chris Kempczinski acknowledged that rising prices had disrupted the company’s value-oriented image and promised investors that the company was committed to regaining market share despite these setbacks.
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