4 meat packers taken to court by McDonald's for inflating beef prices

NEW YORK CITY, New York: McDonald's has filed a federal lawsuit against four of the largest U.S. meat companies - Tyson, JBS, Cargill, and National Beef Packing Company - alleging they conspired to inflate beef prices through anticompetitive practices.

The lawsuit, submitted in New York, claims the meat packers coordinated to limit beef supply, which led to artificially high prices that McDonald's and other direct buyers were forced to pay.

The lawsuit accuses these companies of violating federal antitrust laws, specifically the Sherman Act, by creating a monopoly-like environment in which beef prices were manipulated to the detriment of purchasers. McDonald's claims the alleged conspiracy has been in effect since at least January 2015 and continues today.

In its complaint, McDonald's argues that the packers' actions harmed buyers like the fast food chain, with the inflated prices being exactly what antitrust laws are meant to prevent. The company points out that these four meat packers collectively control more than 80% of the U.S. beef market, a level of concentration that McDonald's says made the collusion easier to orchestrate and sustain.

Tyson, JBS, Cargill, and National Beef have faced similar accusations in the past. In 2021, Tyson paid $221.5 million to settle claims it inflated chicken prices, while JBS reached a $52.5 million settlement in a separate beef price-fixing lawsuit in 2022.

However, neither company admitted to wrongdoing in those settlements. Meat processors have previously argued that factors beyond their control, such as supply chain disruptions during the COVID-19 pandemic and labor shortages, caused price increases rather than any illegal practices.

McDonald's is seeking a jury trial in the case. With more than 39,000 locations worldwide, including around 13,000 in the U.S., the fast food giant's lawsuit is the latest in a series of legal challenges to the U.S. meatpacking industry. Grocery stores, restaurants, and ranchers over similar allegations of price fixing have filed other lawsuits.