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McDonald's sues top meat packers for allegedly colluding to inflate the price of beef

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McDonald's sues top meat packers for allegedly colluding to inflate the price of beef
News

News

McDonald's sues top meat packers for allegedly colluding to inflate the price of beef

2024-10-09 03:08 Last Updated At:03:12

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.

Tyson, JBS, Cargill and National Beef did not immediately respond to requests for comment Tuesday. But these companies have faced federal probes and allegations of price fixing before.

Lawsuits filed by grocery stores, ranchers, restaurants and wholesalers have piled up over the years. Some litigation is still pending, although meat packers and processers have opened their wallets in the past.

In 2022, for example, JBS agreed to a $52.5 million settlement in a similar beef price-fixing lawsuit. And Tyson agreed to pay $221.5 million back in 2021, after facing class-action claims that alleged purposely inflated chicken prices.

Such settlements did not include admissions of wrongdoing, however. Meat processors have previously maintained that larger supply and demand factors out of their control, not anticompetitive behavior, has caused prices to go up. Meat processing plants were occassionally closed during the height of the COVID-19 pandemic, for example, and the industry has also faced labor shortages that were worsened by the pandemic.

Still, lawsuits like the one from McDonald's point to increased profit margins during the alleged time of conspiracy — and argue that overall concentration of the market helps facilitate collusion.

“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.

FILE - The sign outside a McDonald's restaurant is seen in Pittsburgh, June 25, 2019. (AP Photo/Gene J. Puskar, File)

FILE - The sign outside a McDonald's restaurant is seen in Pittsburgh, June 25, 2019. (AP Photo/Gene J. Puskar, File)

LONDON (AP) — A car-ramming at a Christmas market in Germany, which police are treating as an attack, is the latest in a grim series of events in which vehicles have been used as deadly weapons.

There have been a spate of such attacks over the past decade, some committed by groups but most by individuals. The motives – where they could be established – have varied widely. Some were inspired by Islamic militant groups such as al-Qaida and ISIS, which encouraged followers to carry out low-cost, low-tech attacks with cars and trucks. Others have been linked to mental illness, far-right extremism and online misogyny.

What law-enforcement authorities term “vehicle as a weapon attacks” have reshaped cities around the world, as planners erect concrete barriers around public spaces and build anti-vehicle obstacles into new developments.

Here are some major vehicle attacks:

MAGDEBURG, Germany, Dec. 20. 2024 — At least five people are killed and more than 200 injured when a car slams into a Christmas market in eastern Germany. The suspect, who was arrested, is a 50-year-old doctor originally from Saudi Arabia who had expressed anti-Muslim views and support for the far-right AFD party.

ZHUHAI, China, Nov. 11, 2024 — A 62-year-old driver rams his car into people exercising at a sports complex in southern China, killing 35 people in the country’s deadliest mass slaying in years. Authorities said the perpetrator was upset about his divorce but offered few other details.

LONDON, Ontario, June 6, 2021 — Four members of a Muslim family die when an attacker hits them with a pickup truck while they are out for a walk, in what Canadian Prime Minister Justin Trudeau calls “a terrorist attack, motivated by hatred.” White nationalist attacker Nathaniel Veltman was sentenced to life in prison.

TORONTO, April 23, 2018 — A 25-year-old Canadian man, Alek Minassian, drives a rented van into mostly female pedestrians on Yonge St., the main thoroughfare in Toronto, killing 10 people and injuring 16. Minassian told police he belonged to the online “incel” community of sexually frustrated men.

NEW YORK, Oct. 31, 2017 — Sayfullo Saipov, an Islamic extremist from Uzbekistan, drives a pickup truck onto a popular New York City bike path, killing eight.

BARCELONA, Aug. 17, 2017 — A man driving a van slams into people on the Spanish city’s crowded Las Ramblas boulevard, killing 14 and injuring many others. Several members of the same cell carry out a similar vehicle attack in the nearby resort town of Cambrils before they are shot dead by police. The Islamic State group claimed responsibility.

CHARLOTTESVILLE, Virginia, Aug. 12, 2017 — During a “Unite the Right” rally, white supremacist James Alex Fields Jr. intentionally drives his car into a crowd of counter-protesters, killing one woman and injuring dozens of people.

LONDON: March 22, 2017 — British man Khalid Masood rams an SUV into people on Westminster Bridge, killing four, before stabbing to death a policeman guarding the Houses of Parliament nearby. He is shot dead. June 3, 2017 — three attackers drive a van at pedestrians on London Bridge before stabbing people in nearby Borough Market. Eight people are killed and the attackers shot dead by police. June 19, 2017 — Darren Osborne, a man radicalized by far-right ideas, drives a van at worshippers outside a mosque in London’s Finsbury Park area, killing one man and injuring 15 people.

MELBOURNE, Australia, Jan 20, 2017 – Six people are killed and more than 30 injured when a car hits lunchtime crowds at a pedestrian mall in Australia’s second-largest city. Perpetrator James Gargasoulas is found to have been in a state of drug-induced psychosis.

BERLIN, December 19, 2016 — Anis Amri, a rejected asylum-seeker from Tunisia, plows a hijacked truck into a Christmas market in the German capital, killing 13 people and injuring dozens. The attacker is killed days later in a shootout in Italy.

NICE, France, July 14, 2016 — Tunisian-born French resident Mohamed Lahouaiej-Bouhlel drives a rented truck for more than a mile (almost 2 kilometers) along a packed seaside promenade in the French Riviera resort on the Bastille Day holiday, killing 86 people in the deadliest attack of its kind.

APELDOORN, Netherlands, April 28, 2009 – Former security guard Karst Tates drives a car into parade spectators in an attempt to hit an open-topped bus carrying members of the Dutch royal family. Six people are killed and Tates dies of injuries the next day, leaving his full motive a mystery.

CHAPEL HILL, North Carolina, March 3, 2006 — University of North Carolina graduate Mohammed Taheri-Azar drives an SUV into a crowd at the university, lightly injuring nine people, in a self-professed bid to avenge Muslim deaths overseas.

FILE - Injured people are treated in Barcelona, Spain, Thursday, Aug. 17, 2017 after a white van jumped the sidewalk in the historic Las Ramblas district, crashing into a summer crowd of residents and tourists. (AP Photo/Oriol Duran, File)

FILE - Injured people are treated in Barcelona, Spain, Thursday, Aug. 17, 2017 after a white van jumped the sidewalk in the historic Las Ramblas district, crashing into a summer crowd of residents and tourists. (AP Photo/Oriol Duran, File)

FILE - In this April 23, 2018, file photo, police stand near a damaged van after a van mounted a sidewalk crashing into pedestrians in Toronto. (Aaron Vincent Elkaim/The Canadian Press via AP, File)

FILE - In this April 23, 2018, file photo, police stand near a damaged van after a van mounted a sidewalk crashing into pedestrians in Toronto. (Aaron Vincent Elkaim/The Canadian Press via AP, File)

FILE - Forensic officers move the van at Finsbury Park in north London, where a vehicle struck pedestrians in north London Monday, June 19, 2017. (AP Photo/Frank Augstein, File)

FILE - Forensic officers move the van at Finsbury Park in north London, where a vehicle struck pedestrians in north London Monday, June 19, 2017. (AP Photo/Frank Augstein, File)

FILE - In this Dec. 20, 2016 file photo the trailer of a truck stands beside destroyed Christmas market huts in Berlin, Germany. (AP Photo/Markus Schreiber, file)

FILE - In this Dec. 20, 2016 file photo the trailer of a truck stands beside destroyed Christmas market huts in Berlin, Germany. (AP Photo/Markus Schreiber, file)

FILE - In this July 14, 2016 file photo, authorities investigate a truck after it plowed through Bastille Day revelers in the French resort city of Nice, France, killing 86 people. (Sasha Goldsmith via AP, File)

FILE - In this July 14, 2016 file photo, authorities investigate a truck after it plowed through Bastille Day revelers in the French resort city of Nice, France, killing 86 people. (Sasha Goldsmith via AP, File)

FILE - In this Wednesday, March 22, 2017 file photo, police secure the area on the south side of Westminster Bridge close to the Houses of Parliament in London. (AP Photo/Matt Dunham, File)

FILE - In this Wednesday, March 22, 2017 file photo, police secure the area on the south side of Westminster Bridge close to the Houses of Parliament in London. (AP Photo/Matt Dunham, File)

FILE - People fly into the air as a vehicle drives into a group of protesters demonstrating against a white nationalist rally in Charlottesville, Va., Saturday, Aug. 12, 2017. (Ryan M. Kelly/The Daily Progress via AP, File)

FILE - People fly into the air as a vehicle drives into a group of protesters demonstrating against a white nationalist rally in Charlottesville, Va., Saturday, Aug. 12, 2017. (Ryan M. Kelly/The Daily Progress via AP, File)

FILE - In this Dec. 20, 2016 file photo Christmas decoration sticks in the smashed window of the cabin of a truck which ran into a crowded Christmas market Monday evening killing several people in Berlin, Germany. (AP Photo/Markus Schreiber, file)

FILE - In this Dec. 20, 2016 file photo Christmas decoration sticks in the smashed window of the cabin of a truck which ran into a crowded Christmas market Monday evening killing several people in Berlin, Germany. (AP Photo/Markus Schreiber, file)

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