The U.S. Department of Justice accused a meatpacking industry data provider of gathering and sharing nonpublic information that allowed domestic poultry and pork processors to raise prices at restaurants and grocery stores, reports The Wall Street Journal.
Agri Stats, an Indiana-based data insights company, gathers and shares information from pork- and poultry-processing plants. The Justice Department alleged that executives use the data to identify details about rivals’ supplies so they can raise prices without fearing market share loss.
A lawyer for AgriStats said the company denies the allegations.
An antitrust partner at Morrison Foerster who isn’t involved in the proceedings commented: “It’s an aggressive case and one in which [the DOJ is] trying to extend their view of what kind of circumstantial case they can bring.”
Prosecutors indicate that the data company’s reports encourage meatpackers to reduce the amount of livestock they slaughter and increase their prices. This case highlights the Biden administration’s goal of enforcing competition laws with a particular focus on agriculture and healthcare. Full Story (Subscription Required)
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