Government Agencies

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CHAPTER I

GOVERNMENT AGENCIES

The U.S. Department of Justice, U.S. Department of Agriculture,

Federal Trade Commission, U.S. Food and Drug Administration, state

attorneys general, and Congress together share responsibility for the

creation and enforcement of laws and regulations that apply to the

agriculture and food industries. The following chapter will discuss the

role of each agency and how it fits within the overall regulatory

framework.

A. U.S. Department of Justice

The DOJ’s Antitrust Division enforces both the civil and criminal

provisions of the Sherman Act and the Clayton Act. In this capacity, the

DOJ may prosecute potential violations of the antitrust laws following

investigation, participate in regulatory proceedings that deal with

antitrust laws or competitive policies, and advocate for procompetitive

policies within other branches of government.

The DOJ reviews mergers in the agriculture industry. The DOJ has

authority under Section 7 of the Clayton Act to prohibit mergers that may

lessen competition substantially or tend to create a monopoly.1 One

typical example of the DOJ’s exercise of this power occurred when the

DOJ challenged JBS’s proposed acquisition of National Beef in 2008,2

which would have combined the third and fourth largest beef processors

in the United States, leaving three firms with over 80 percent of

domestic-fed cattle processing capacity. The DOJ alleged the transaction

would result in less competition among beef packers for the purchase of

fed cattle and in the sale of boxed beef. In response to the DOJ’s lawsuit,

JBS and National Beef abandoned the proposed acquisition.

1. 15 U.S.C. § 18.

2. Complaint, United States v. JBS S.A., No. 08-5992 (N.D. Ill. Oct. 20,

2008), available at https://www.justice.gov/atr/case-document/complaint-

137.