Nebraska has joined a lawsuit accusing pesticide companies Syngenta and Corteva of anti-competitive practices that have cost farmers.
Nebraska joined the Federal Trade Commission and nine other states, including Iowa, in a complaint that was filed in U.S. District Court for the Middle District of North Carolina on Thursday. Both companies denied the allegations.
The complaint alleges that U.S. farmers have collectively lost millions of dollars because Syngenta and Corteva have unfairly impeded their generic competitors and artificially inflated prices.
The companies artificially inflated prices by creating “loyalty programs” with pesticide distributors that have made it harder for farmers to access lower-priced generic products, the lawsuit alleges.
While generic companies are allowed to enter the market using the same active ingredients after patent-related exclusivity protections expire, the lawsuit alleges that Syngenta and Corteva made incentive payments to pesticide distributors in exchange for distributors to not buy or buy significantly lower amounts of generic products. Through deals with distributors, the two companies essentially created a monopoly on sales of certain pesticides, the lawsuit states.
The lawsuit alleges that Syngenta and Corteva broke multiple state and federal laws, including the FTC Act and the Clayton Act. Nebraska specifically accuses the companies of violating the Nebraska Consumer Protection Act. The lawsuit asks for monetary relief, including for farmers in Nebraska, according to State Attorney General Doug Peterson. The suit also seeks an end to the “loyalty programs.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI