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Friday, April 19, 2024

U.S. government alleges merger of organic milk companies would hurt competition

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WASHINGTON (Legal Newsline) — The government is suing two organic milk companies, alleging violation of federal law.

The United States of America through the Justice Department filed a complaint April 3 in U.S. District Court for the District of Columbia against Danone SA of France and The Whitewave Foods Company of Colorado, alleging they seek a merger in order to reduce competition among the producers of organic milk.

According to the complaint, the U.S. suffers monetary damages on behalf of the farmers and consumers that could have benefit from competition in the organic milk market. The plaintiff alleges the defendants' merger would result in higher prices for fluid organic milk due to the lack of competition, violating the Clayton Act.

The U.S. government seeks a ruling for Danone's proposed acquisition of Whitewave to be unlawful, enjoin the defendant, all legal fees and all other just relief. It is represented by Suzanne Morris, Rebecca Valentine and Jeremy Cline of the U.S. Department of Justice, and acting assistant attorney general Brent Snyder in Washington, D.C.

U.S. District Court for the District of Columbia Case number 1:17-cv-00592-KBJ

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