By ChinRes 
A lawsuit has been launched by McDonald’s against four of the most significant beef suppliers in the United States. The lawsuit accuses the firms of artificially restricting the availability of beef in the country in order to charge purchasers greater costs. It was on October 4, 2024 that the fast food business filed the lawsuit in a federal court in Brooklyn.
The lawsuit also included the participation of the meat corporations JBS, Tyson Foods, Cargill, and National Meat Packing. According to USDA, these corporations generate 85 percent of the beef that is sold in the United States from steer and heifer cows that are acquired and dispersed across the country.
McDonald’s asserts in the lawsuit that the meat packaging businesses “implemented their conspiracy by arranging, manipulating, or agreeing to pay less than competitive prices for the principal or primary input in producing beef.” This is according to the allegations made by McDonald’s at the beginning of the lawsuit.
According to the allegations, this made it possible for businesses to withhold portions of their supply of beef, which resulted in an increase in the pricing of beef products that were ultimately sold to businesses such as McDonald’s. Since the year 2015, the plaintiff asserts that the meatpackers have been engaging in a conspiracy.
According to Reuters, McDonald’s is apparently demanding end to the alleged beef price conspiracy as well as monetary compensation for damages, the amount of which is presently unknown. Additionally, McDonald’s is seeking compensation for losses.
In the same way that Whole Foods’ Berry Chantilly Cake has seen “skimpflation” (and soda cans continue to shrink), the prices of McDonald’s burgers, such as the Big Mac and Quarter Pounder, have unquestionably increased over the past several years as a direct result of the shifting economic climate.
Joe Erlinger, the President of the corporation, replied to consumer complaints over significant adjustments to the pricing of McDonald’s menu items in May of 2024. He cited “historic rises in supply chain costs” and “inflationary pressures” as the primary reasons for the price increases (according to McDonald’s).
As a result of this new case, JBS, Tyson Foods, Cargill, and National Meat Packing are accused of generating “artificial” supply chain expenses by lying about the availability of beef. As a consequence, McDonald’s has been paying higher prices than should have been considered essential for almost a decade.
The four corporations that are now facing litigation have not provided any comments on the current case that has been brought by McDonald’s. However, it has been stated that they have not been found guilty of any misconduct in past lawsuits that have involved conditions that are comparable to the current one. It was also alleged in a case that was consolidated in a federal court in Minnesota that the four meatpacking corporations had violated the Sherman Antitrust Act.
This law bans companies from conspiring with one another with the intention of manipulating the market and restricting competition. It was ultimately determined that the plaintiff had “failed to establish causation and an actual harm as would be necessary for antitrust standing.” This resulted in the lawsuit being dismissed.