Bayer is facing a federal lawsuit filed by Latham Quality, an Iowa-based family-owned seed company, which alleges that the company used illegal and anti-competitive practices to monopolize the U.S. market for genetically engineered corn seeds, according to court documents made public on May 28.
The lawsuit claims Bayer has reaped “hundreds of millions, if not billions, of ill-gotten dollars” by controlling the market for corn seeds engineered to resist its weedkiller Roundup. The suit was filed in the U.S. District Court for the Eastern District of Missouri and proposes a class action seeking treble damages for Latham and similar companies.
According to the complaint, Bayer allegedly raised costs for farmers and independent seed companies by restricting competition through control over NK603 corn seeds—seeds that are resistant to Roundup. The document states that nearly all genetically engineered hybrid corn seeds sold in the U.S. carry this trait, with demand remaining high even after Bayer’s last patent on NK603 expired in 2022. Despite this expiration, no viable competition has emerged due to what Latham describes as “the direct result of Bayer’s anti-competitive conduct to maintain its monopoly.”
The Department of Justice said last week that Bayer removed potentially anti-competitive provisions from a loyalty program involving independent seed companies licensing its technology. In response to these allegations, Bayer said it believes they lack merit and intends to respond in court: “The crop input and corn seed markets are competitive, fair and diverse,” Bayer said.
Latham further alleges that when it began developing its own competing products using licensed NK603 traits from Bayer or Monsanto (acquired by Bayer in 2018), a representative warned them to “stay 100% loyal to Bayer.” When Latham continued its efforts, sales representatives allegedly retaliated using non-public information against Latham’s business interests.
“Unfortunately, many independent companies are going out of business as these multinational companies have become more powerful and frankly predatory,” John Latham, president of Latham Quality, told a U.S. Senate Judiciary Committee hearing on competition in October.
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