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TITLE:  FARMERS ASK FEDERAL COURT TO STOP PREDATORY PRICING OF GLYPHOSATE BY MONSANTO

SOURCE: American Corn Growers Association, USA

AUTHOR: Press Release

URL:    http://www.acga.org/News/2007/022207.htm

DATE:   21.02.2007

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FARMERS ASK FEDERAL COURT TO STOP PREDATORY PRICING OF GLYPHOSATE BY MONSANTO

American Corn Growers File for Injunctive Relief in Federal Court to Foster Competition in Herbicide Markets

WASHINGTON, Feb 21, 2007 –American Corn Growers Association (ACGA) has filed a lawsuit in federal court to halt the anticompetitive practices of Monsanto as they relate to the marketing of Roundup® herbicide.

The antitrust action, filed in the United States Court for the District of Delaware, alleges that Monsanto has violated federal and state antitrust laws by using its monopoly power in the herbicide market and biotechnology seed trait markets to unlawfully monopolize and restrain competition in the market for glyphosate herbicides, and has otherwise acted to maintain supra-competitive pricing for its glyphosate herbicides. As stated in the complaint, ACGA claims that Monsanto’s improper conduct has caused or threatens to cause injury to ACGA’s members who have paid, or will pay in the future, artificially inflated and non-competitive prices for Monsanto’s glyphosate products

”ACGA does not oppose the development or use of either genetically-modified crops or glyphosate herbicide within a market that gives consumers choices regarding the agricultural products they purchase,” said Larry Mitchell, ACGA Chief Executive Officer. ”Rather, the ACGA seeks to enjoin Monsanto’s ongoing use of various anticompetitive tactics that have (and will) limit, deter, or impede competition from other herbicides, including lower-priced generic glyphosate.”

The ACGA complaint states, ”Through its anticompetitive practices, Monsanto has limited (and will continue to limit) farmers’ ability to choose and gain access to competing herbicides at the lowest, fully-efficient prices that would exist absent Monsanto’s conduct. By limiting farmers’ choices and ability to buy competing herbicides at their lowest, fully-efficient prices, Monsanto has interfered with the normal competitive process, which in turn has reduced the pressure on Monsanto’s prices. The anticompetitive effects of Monsanto’s conduct have been that farmers, including members of the ACGA (a) have been denied the benefits of free and open competition, including the development and sale of new and competing herbicides; (b) have had fewer choices among glyphosate herbicides; and (c) have been forced to pay artificially inflated and non-competitive prices for glyphosate herbicide.”

”ACGA does not seek damages or punishment of Monsanto for their antitrust violations, but we are seeking to stop their anticompetitive practices,” concluded Mitchell. ”We want to foster competition in the industry and preserve the nation’s free enterprise economy.”

Please click here to read the entire Monsanto Complaint filed with the United States Court for the District of Delaware.

http://www.acga.org/News/2007/Monsantocomplaintasfiled.pdf

For more information on the court filing, go to www.acga.org

 


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