NEW YORK (AP) — McDonald’s has filed a lawsuit against the largest meat packers in the U.S., known as the “Big Four”: Tyson, JBS, Cargill, and National Beef Packing Company. The fast-food giant claims these companies have engaged in a scheme to fix beef prices.
In a federal complaint submitted on Friday in New York, McDonald’s accuses the meat packers of limiting supply to artificially inflate prices.
The lawsuit states that this collusion has created a monopoly in the beef market, forcing buyers to pay inflated prices.
McDonald’s argues that such actions violate antitrust laws designed to protect consumers.
The complaint alleges that the conspiracy among these meat packers dates back to at least January 2015 and continues today. McDonald’s claims that their actions breach the Sherman Act, a key federal antitrust law. As of Tuesday, Tyson, JBS, Cargill, and National Beef had not responded to requests for comment.
Background on Previous Allegations
This lawsuit is part of a larger trend of legal challenges against these companies. Over the years, grocery stores, ranchers, restaurants, and wholesalers have filed numerous lawsuits related to price-fixing. Some of these cases are still ongoing. Notably, JBS settled for $52.5 million in 2022 over similar allegations, while Tyson paid $221.5 million in 2021 for inflating chicken prices.
Despite these settlements, the meat processors have consistently denied wrongdoing. They argue that market factors beyond their control—such as supply and demand fluctuations—are responsible for rising prices. For instance, processing plants were occasionally closed during the COVID-19 pandemic, which exacerbated labor shortages.
Market Control And Profit Margins
McDonald’s lawsuit highlights how increased profit margins coincided with the alleged conspiracy. The complaint notes that “conspiracies are easier to organize and sustain when only a few firms control a large share of the market.” Data indicates that Tyson, JBS, Cargill, and National Beef together control over 80% of the U.S. beef market.
The fast-food chain is seeking a jury trial as it pursues justice for what it describes as an antitrust injury resulting from paying inflated prices for beef.
With more than 39,000 locations worldwide—including about 13,000 in the U.S.—McDonald’s continues to be a major player in the fast-food industry.
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