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McDonald’s has sued major meat processors like Tyson Foods, accusing them of price-fixing practices since 2015. The lawsuit alleges these companies intentionally limited beef supply, inflating prices and violating antitrust laws, contributing to rising burger prices in the U.S.
McDonald’s Lawsuit Accuses Tyson and Other Meat Processors of Limiting Beef Supply to Inflate Prices
According to a report by Reuters, McDonald's has filed a lawsuit against several meat-processing companies, accusing them of engaging in widespread price-fixing practices. The lawsuit names prominent companies such as Tyson Foods, National Beef Packing, Cargill, and others, alleging that these firms intentionally limited the beef supply to inflate prices artificially. McDonald's claims that this practice has been going on since 2015. The lawsuit highlights that in 2018 these companies supplied about 80% of the 25 million pounds of beef procured by U.S. buyers, demonstrating the significant influence these meat-packing companies have over the beef market.
While McDonald's has been the subject of lawsuits over the years—often related to injuries caused by scorching food—this time, the fast-food chain is the plaintiff. Interestingly, the meat-processing companies in McDonald's lawsuit have faced similar accusations. Gordon Food Service, Target, and others previously filed suits against four major meat processors, also alleging price-fixing schemes, as the Western Livestock Journal reported.
McDonald’s Blames Beef Price Hikes on Alleged Price-Fixing by Major Meat Processors, Citing Antitrust Violations
McDonald's, known for flash-freezing its 100% beef patties to maintain freshness, has faced rising burger prices in recent years, frustrating many consumers. The fast-food chain's lawsuit may explain these price hikes. In the court filing, McDonald's cites violations of the Sherman Anti-Trust Act, a law enacted in 1890 that prohibits companies from conspiring to manipulate market prices.
As reported by Courthouse News Service, witness testimony in similar cases confirmed that the defendants reduced beef purchases collectively, causing shortages that led to "supra-competitive prices"—prices significantly higher than they would be in a competitive market. Through this lawsuit, McDonald's seeks not only to end these price-fixing practices but also to obtain damages for violations of antitrust laws.
