DOJ Looking At Monsanto For Antitrust Inquiry



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This is the sort of thing I like to highlight when people complain about not enough changes coming. There are whole host of things, as the Bush administration showed, subject to the power of the executive branch and a new president with a sane political philosophy can make those changes.

During the Bush administration, the Justice Department did not file a single case under antimonopoly laws regulating a dominant firm. But that stretch seems unlikely to continue.

This year, the Obama Justice Department tossed out the antitrust guidelines of its predecessor because they advocated ‘extreme hesitancy in the face of potential abuses by monopoly firms.’

‘We must change course,’ Christine Varney, the Obama administration’s chief antitrust enforcer, said at the time.

Of all the new scrutiny by Justice, the Monsanto investigation might have the highest stakes, dealing as it does with the food supply and one of the nation’s largest agricultural firms. It could also force the Obama administration, already under fire for the government’s expanded role in the economy, to explain how it distinguishes between normal rough-and-tumble competition and abusive monopolistic business practices.

Monsanto says it has done nothing wrong.

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28 Responses to “DOJ Looking At Monsanto For Antitrust Inquiry”

  1. jr says:

    Teddy Roosevelt time

  2. Joe Anonymous says:

    So THIS is why they had to drop the already-won Black Panther voting rights case in Philadelphia, and why they don’t have time to investigate ACORN — “there’s someone making money AND food, and that’s GOTTA stop! How dare they charge what they want for their property?”

    Such things must, of course, be squelched as quickly as possible.

    • mambochicken23 says:

      So THIS is why they had to drop the already-won Black Panther voting rights case in Philadelphia, and why they don’t have time to investigate ACORN

      You want me to look over where?

      “there’s someone making money AND food, and that’s GOTTA stop! How dare they charge what they want for their property?”

      Yeah, you’re right, the Obama administration hates it when businesses make money. Especially if they’re a producer of food. It’s really not just them, it’s all the socialist fascist communist Nazi Marxists (SFCNMs). I know that if I were president, my agenda would be to get legislation passed that would make it a felony to make any money. That goes for individuals as well as corporations. Any profits made by the private sector would go to my government, where I would use the money to pay for abortions and gay marriages. Some money would undoubtedly go to financially support Al Qaeda, because I love terrorists and sympathize with their plight. Anything left after that would just ship over to Iran or North Korea as a gesture of my support for their regimes and my hatred of America.

    • Repack Rider says:

      The latest strawman is that the libruls are anti-food. Where do conservatives FIND these people?

      Joe is saying that because a company produces a product everyone needs, and controls that entire market, then it couldn’t possibly abuse its monopoly power. Joe does not understand how a monopoly operates.

  3. Rheinhard says:

    About damn time. Monsanto is “making money AND food” by bankrupting indigienous farmers throughout Central America (our national trade and agriculture policy, largely written by Monsanto lobbyists) is the biggest reason for the waves of illegal immigration — we’ve made it impossible for thousands of poor farmers to make a living. Hey wingnuts! If you wanna stop illegal immigration, destroy Monsanto!

    Also wingnuts like to pretend they’re in favor of personal property rights… Explain then how they can also be in favor of, say, a “salt of the earth” midwestern farmer being sued out of existence because some bioengineered crop pollens drifting over from the nearby giant agribusiness collective cross-pollinates some of the farmer’s corn crop, and all of a sudden that farmer is “violating Monsanto’s Intellectual Property rights” because he has a portion of his crop growing with a genome partially “copyrighted” by Monsanto. He’s gonna need to pony up the cash to Monsanto’s IP lawyers if he can’t control the winds and the bees!

    Monsanto is among the most thoroughly evil corporations out there. I’d put it up there with Blackwater/Xe and Goldman Sachs for corporations that need to have everyone above the level of executive vice president publicly hanged.

  4. Southern Quaker says:

    I’m with Rheinhard. Monsanto also forbids harvesting seeds from its crops. This ancient practice has been a hedge against drought and other disasters literally since the dawn of agriculture, and yet Monsanto forces farmers in the third world – who often have no where else to go for their seeds – to sign an agreement saying they will not harvest their own seeds.

  5. MatanteDodo says:

    Agreed.
    The copyright story Rheinhard talked about also happened over here in Canada. Monsanto’s bad practices have harmed people all over the world and if a few lawsuits can scare it into acting a little better, then it’s great news!

  6. Joe Anonymous says:

    Rheinhard, it’s not copyright, it’s “patent.”

    And ooh, Monsanto sunk a bunch of money and took some big risks into something that worked out really well. Those bastards! From the article:

    The resulting plants, called “Roundup Ready,” represented a billion-dollar breakthrough and, as Monsanto sees it, a just reward for its $1.5 billion investment in biotech research.

    “During the same period, our competitors . . . largely ignored biotech,” the company said in a statement. “Monsanto took risks our competition chose not to take.”

    Although farmers have grumbled about Monsanto’s regular price increases for Roundup Ready technology for seeds, it is DuPont, a Monsanto rival, that has pressed the antitrust case.

    Farmers and seed companies “are afraid to speak in public, worried that they will become victims of retaliation,” Thomas L. Sager, DuPont senior vice president and general counsel, said in a statement. “That’s why it’s so important that antitrust investigators move quickly — to learn the truth before even more harm is done to America’s farmers.”

    In court papers, DuPont argues that Monsanto has used the dominance of the Roundup Ready brand to prevent competitors from bringing innovations to market.

    So… Monsanto made a fantastic product with Roundup. Then they used that to come up with other products that work very, very well with Roundup. They sunk literally billions into the two, with no guarantees of success, and they want to reap the rewards of their efforts.

    And that pisses off their competitors, like Dupont, who are blessed with a horde of willing tools like you to jump on Dupont’s bandwagon and punish success.

    So, O, how much is Dupont paying you to shill for them on this?

    (I know the answer already — zero. Why pay for what you can get for free? But I thought I’d pre-empt the “you’re just a shill for Monsanto” bullshit I’m sure someone will toss out.)

    Don’t wanna use Roundup and Roundup Ready products? Then don’t. It’s their product, their property, and if they wanted to, they could just say “fuck you all” and simply shut it all down.

    Wanna use their stuff? Abide by their terms.

    You say it’s different because it’s food? Fine. Then kiss goodbye future products like Roundup, ‘cuz you’ve just killed off the profit motive that brought us that in the first place.

  7. Southern Quaker says:

    You’re not paying attention, Joe – noone is suggesting Monsanto should give Roundup away for free. The problem is that when their genetically modified plants inevitably cross-pollinate with neighboring fields, Monsanto sues the small farmer – who doesn’t have the resources to fight back – for violating their patented hybrid.

    I’m waiting for them to go after bees.

  8. Joe Anonymous says:

    Oddly enough, Quaker, there’s absolutely no mention of Rheinhard’s issues in the linked article — just that DuPont is the one pushing this anti-trust lawsuit. And some casual research showed that he’s probably talking about a case in Canada where the farmer in question violated the terms of his contract with Monsanto and was sued. During the course of the civil trial, the farmer violated a court order to NOT destroy the seeds in question and was given eight months in jail for contempt.

    Oh, the court decided that the farmer DID deliberately use Roundup Ready seeds without paying for them — but since he didn’t actually use Roundup, he got off on that with just a wrist slap. The contempt charge was incidental — and Monsanto had NOTHING to do with that. If you destroy evidence after a judge specifically tells you not to, I got NO sympathy for your ass.

    I don’t feel like doing any more research on Rheinhard’s behalf. Let him find his own evidence. And while he’s at it, he can learn the differences between “copyright,” “patent,” and “trademark.” They are NOT interchangeable.

    • Southern Quaker says:

      Monsanto’s aggressive tactics are hardly unknown, Joe, especially in the Midwest, where Monsanto sells GE-corn and GE-soy and has also bought up the “normal seed” companies so farmers no longer have places to go for non-GE corn or soy. Since you don’t seem too interested in finding the truth out for yourself, I’ll get you started. You can start here:

      Gary Rinehart, a northern Missouri convenience store owner, said he was accosted in 2002 by a Monsanto private investigator who warned him not to fight the company. Only Rinehart doesn’t own a farmer or sell seeds.

      “It was a case of mistaken identity,” he said.

      Monsanto sued Rinehart in federal court before dropping its case. According to a statement on the company’s Web site, a Monsanto investigator “saw unmarked, brown bagged seed delivered to a couple of fields” nearby.

      74-year-old Mo Parr is a seed cleaner; he is hired by farmers to separate debris from the seed to be replanted. Monsanto sued him claiming he was “aiding and abetting” farmers, helping them to violate the patent.

      “There’s no way that I could be held responsible,” Parr said. “There’s no way that I could look at a soy bean and tell you if it’s Round-up Ready.”

      Quote
      Pollination occurs, wind drift occurs. There’s just no way to keep their products from landing in our fields.

      David Runyon The company subpoenaed Parr’s bank records, without his knowledge, and found his customers. After receiving calls from Monsanto, some of them stopped talking to him.

      “It really broke my heart,” Parr said. “You know, I could hardly hold a cup of coffee that morning,”

      David Runyon and his wife Dawn put a lifetime of work into their 900-acre Indiana farm, and almost lost it all over a seed they say they never planted.

      “I don’t believe any company has the right to come into someone’s home and threaten their livelihood,” Dawn said, “to bring them into such physical turmoil as this company did to us.”

      The Runyons charge bio-tech giant Monsanto sent investigators to their home unannounced, demanded years of farming records, and later threatened to sue them for patent infringement. The Runyons say an anonymous tip led Monsanto to suspect that genetically modified soybeans were growing on their property.

      “I wasn’t using their products, but yet they were pounding on my door demanding information, demanding records,” Dave said. “It was just plain harassment is what they were doing.”

      The Runyons say they signed no agreements, and if they were contaminated with the genetically modified seed, it blew over from a neighboring farm.

      “Pollination occurs, wind drift occurs. There’s just no way to keep their products from landing in our fields,” David said.

      “What Monsanto is doing across the country is often, and according to farmers, trespassing even, on their land, examining their crops and trying to find some of their patented crops,” said Andrew Kimbrell, with the Center For Food Safety. “And if they do, they sue those farmers for their entire crop.”

      In fact, in Feb. 2005 the Runyons received a letter from Monsanto, citing “an agreement” with the Indiana Department of Agriculture giving it the right to come on their land and test for seed contamination.

      Only one problem: The Indiana Department of Agriculture didn’t exist until two months after that letter was sent. What does that say to you?

  9. Rheinhard says:

    Joe – you snotnosed ass – I have been reading about Monsanto’s illicit, anticompetetive trade practices for years. I have been reading about what their corporate law thugs have been doing to mainstream family farmers for years. If you’re that fucking pig-ignorant that you think this one case and that one article contains the sum total of discussion of Monsanto’s crimes, then I don’t see why it’s worth my time to try and provide you with some list of links which you wouldn’t bother to read anyway, since they’d probably use too many polysyllabic words and so Glenn Beck wouldn’t be able to summarize them for you, leaving you with no option but to cut and paste another one of your tiresome “Look over there! ACORN” screeds.

    • mambochicken23 says:

      I suspect that Joe Anonymous is probably Dennis. Though if you have seen one wingnut jackass, you’ve seen them all. I might be mistaken.

  10. Southern Quaker says:

    What baffles me is that conservatives continue to take the sides of giant corporations against the small businesses and farmers in this country.

  11. Joe Anonymous says:

    Shorter Rheinhard: I got nothin’.

    As far as polysyllabic words… you can’t handle “copyright,” “patent,” and “trademark,” with their mere two syllables, so I’m not overly intimidated.

    So, was all your study of Monsanto’s offenses done while on DuPont’s payroll or something? After all, they’re the ones pushing this case against Monsanto…

    Why do you do DuPont’s dirty work, Rheinhard? What’s in it for you?

    • fafaroo says:

      And some casual research showed that he’s probably talking about a case in Canada where the farmer in question violated the terms of his contract with Monsanto and was sued.

      Joe, are you talking about the Monsanto vs Schmeiser case?

    • SpiderJ says:

      So, just so I’m clear…DuPont has an interest in backing a suit against Monsanto.

      Ergo, Monsanto cannot possibly have done anything wrong.

      Is that the argument, Joe?

  12. Southern Quaker says:

    So Joe, you agree with Monsanto that small business seed cleaners should be run out of business, whether or not they have done anything illegal?

  13. Quaker in a Basement says:

    Clearly those small farmers used wind to steal from Monsanto.

  14. Joe Anonymous says:

    Now, Quaker, THAT’S how you make an argument.

    Rheinhard (doesn’t that sound an awful lot like “Rinehart?” Gotta be a coincidence) tossed out his accusations and then refused to back it up. Instead, he challenged me to do his homework for him.

    Now, as for that pesky wind, Quaker… I took a comment from that CBS article you quoted and did some digging, and found this:

    Modes of Gene Escape from Research Plots
    Pollen is unlikely to escape from research plots. Soybeans are almost completely self pollinated (Carlson and Lersten, 1987; McGregor, 1976). Caviness (1970) showed that honey bees are responsible for the occasional cross-pollination, and that thrips are ineffective pollination vectors. Soybean seed has a short time potential for high germination and vigor, and in commercial operation, fresh soybean seed is produced annually for each new season (TeKrony et al., 1987). However, some remaining seed from one crop is capable of germinating the following season, and is therefore able to cause a temporal, if not geographic, dispersal of the soybean plant. Vegetative reproduction of soybean plants does not occur under field conditions.

    Survival of Soybean Plants
    Soybean plants are annuals, and do in most areas of cultivation not survive from one growing season to the next (Hymowitz and Singh, 1987). Survival from one season to the next is by seed, and for commercial varieties, this requires fresh, properly grown and handled seed for each growing season (TeKrony et al., 1987).

    Source: PRRI Guide on notifications and Risk Assessment, 2nd Edition, p. 49. Downloadable here: http://pubresreg.org/index.php?option=com_content&task=view&id=29&Itemid=40

    Monsanto’s tactics, if that CBS report is accurate (and Armen Keteyian has a pretty solid rep, despite working for CBS), are despicable. No argument. But I see that Monsanto won the case against the seed cleaner, before a jury — why?

    Oh, here’s the other side of the story:

    http://www.monsanto.com/monsanto_today/for_the_record/maurice_parr.asp

    Parr was telling his customers that it was perfectly legal for them to violate their agreement with Monsanto and save their RoundUp Ready seeds for the next year as part of his sales pitch, that Monsanto’s contract was unenforceable, and they ought to have him clean their RoundUp Ready seeds so they can save them for the next year.

    And what did big, mean ol’ Monsanto do to the old guy? They agreed to waive any damages if he promised to knock it off.

    Note the link to a PDF of the settlement.

    Let’s see… Rinehart/Rheinhard won’t offer any proof, Quaker steps up and offers half the story…

    It seems to me that people are liking this proposed smackdown of Monsanto not on its own merits (as put forward by DuPont), but because Monsanto has it coming anyway. The relative merits of DuPont’s case don’t count; all that matters is that Monsanto be punished.

    That sound about right?

    • Southern Quaker says:

      See Joe, it’s not so hard to do your homework now, is it? Perhaps Parr was at fault in misleading his customers. However, that doesn’t explain why Monsanto is trying to drive the entire seed cleaning industry out of business, except to stifle the competition. Now that you’ve learned how to do a bit of research, check out the laws they are pushing in the upper mid-west concerning seed cleaning operations, making it all but impossible for small operations and co-ops to stay open.

      Monsanto’s tactics, if that CBS report is accurate (and Armen Keteyian has a pretty solid rep, despite working for CBS), are despicable.

      Which is why they are being sued under anti-trust laws, capiche? Buying up and making unavailable all sources of non-GMO seeds seems to fit that bill, not to mention their heavy-handed treatment of farmers and seed cleaners.

  15. Bruce Henry says:

    This guy couldn’t possibly be Dennis. This guy is good. Good Troll vs LiberalCommenter interaction is why I like it here.

  16. Joe Anonymous says:

    Quaker, do a little of your own homework. Under the court decree, Parr can continue cleaning seeds — he just has to stop telling farmers that they can break their agreement with Monsanto with impunity. And they also forgave the financial portion of the agreement. It was a “go forth and sin no more” case.

    Here’s the quote:

    Mr. Parr is able to continue to clean conventional soybeans, wheat and other non-patented seed crops. Monsanto has agreed to forego the financial judgment as long as Mr. Parr honors the terms of the court order.

    And who’s behind the anti-trust charges? Why, their biggest competitor — DuPont. Who stands to make quite a tidy sum of money if this goes through.

    This ain’t David vs. Goliath here. This is Goliath vs. Goliath — and one of them wants the federal government to help them beat down their competition.

    But as long as it’s red on red, though, Quaker, is that all that matters to you?

    And I’m still suspicious about “Rheinhard” and “Rinehart” here. Odd that someone with so similar a name should know so many intricate details — but not be able to readily provide sources. It’s almost as if he knows this stuff intimately, for personal reasons, and doesn’t need to have to look any of it up.

    • Southern Quaker says:

      What matters to me is that the government finally step in an stop some of these non-competitive practices that have been allowed to flourish over the last two decades. If the government can prove anti-competitive behavior on the part of Monsanto they should do so, regardless of who is “behind” the lawsuit. If your local drug dealer rats out his competition, would you prefer the police not to follow up on the tip just because it came from another drug dealer?

      And I specifically addressed laws recently introduced into the state legislatures of Indiana and Illinois that would all but put seed cleaning out of business. Laws which were essentially written by and lobbied for by Monsanto.

    • Southern Quaker says:

      And if the government wants to go after DuPont next for anti-trust violations, more power to them.

      • Joe Anonymous says:

        And if the government wants to go after DuPont next for anti-trust violations, more power to them.

        Well, Monsanto certainly has both motive and precedent on their side if the DuPont-backed move goes through, SQ.

        This surely is the highest duty of government — to help one big company fight another big company.

        Ever seen what happens to the mice when elephants fight?

        Neither have the elephants. Nor do they care.

  17. Joe Anonymous says:

    Oh, and Quaker, Rheinhard should have been ready and willing to do his homework. If he puts forth something, he better be ready to back it up. I do my own homework (in this case, reading the original article and picking up on the DuPont element); he can do his own.

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