Two senators have floated the idea that the FTC could launch a probe into the meatpacking industry under an obscure authority last invoked in the 1920s, according to Bloomberg.
Senators Elizabeth Warren, a Massachusetts Democrat, and Mike Rounds of South Dakota, introduced a joint resolution that would, if enacted, order the FTC to look into potential price-fixing, monopolization or other antitrust violations in the beef industry.
The resolution comes as consumer prices have been rising at the fastest rate in decades and congressional Democrats are seeking ways to reduce price increases, or at least avoid being blamed for them, before the November elections. Meat prices were up 13.8% in April year-on-year, according to the Labor Department’s Consumer Price Index.
Related: US Rep. Hawley Pushes Bills Targeting Meatpacking Industry
Senator Warren introduced legislation last week that would give the FTC and state attorneys general more power to investigate companies that charge excessive prices.
The White House has blamed meatpackers for inflation at the supermarket, alleging that the largest companies are engaged in “pandemic profiteering.”
Four large companies – Tyson Foods Inc., Cargill Inc., JBS SA and National Beef Packing Co. – control 85% of U.S. beef processing capacity, according to data released by the White House. The companies have denied abusing their market position, saying that rising prices are the result of the coronavirus pandemic and supply-chain shortages.
Meatpáckers and other food industry sectors have been under tight scrutiny long before the current post-pandemic inflation began, with previous accusations of collusion and price-gouging in 2020 and 2021, where antitrust authorities have met with varying levels of success.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 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