Bayer faces antitrust lawsuit over alleged monopoly in U.S. GMO corn seed market

Germany-based agricultural and pharmaceutical company Bayer has been sued in federal court over allegations that it monopolized the U.S. market for genetically engineered corn seeds, according to a lawsuit filed by Iowa seed company Latham Quality.

The lawsuit, filed in the U.S. District Court for the Eastern District of Missouri, alleges Bayer used anti-competitive practices to maintain dominance over corn seeds containing the NK603 trait, a widely used genetic modification that allows crops to tolerate glyphosate-based herbicides such as Roundup. Latham claimed Bayer’s conduct enabled the company to collect “hundreds of millions, if not billions, of ill-gotten dollars” while increasing costs for farmers and independent seed producers.

Latham said Bayer restricted independent seed companies from using its genetic material to develop competing generic seed products even after key patents on NK603 expired in 2022. The lawsuit also alleged Bayer continued charging royalties and raised licensing fees while using loyalty programs and market leverage to discourage competition. According to the complaint, Bayer representatives warned Latham to “stay 100% loyal to Bayer” after the company attempted to develop competing corn seed products.

Bayer denied the allegations, saying the claims lack merit and that the company competes fairly across its agricultural operations. The company stated that the U.S. crop input and corn seed markets remain “competitive, fair and diverse.”

The case comes as the U.S. Department of Justice recently said Bayer had removed potentially anti-competitive provisions from a loyalty program used with independent seed companies licensing its technology. The dispute also unfolds against a backdrop of financial strain across the U.S. farm sector, where growers continue to face elevated seed, fertilizer, and fuel costs alongside narrowing profit margins.

Latham further alleged Bayer retaliated against the company by using non-public information through sales representatives affiliated with Bayer brands, leaving the family-owned business close to bankruptcy. John Latham, president of Latham Quality, previously told a U.S. Senate Judiciary Committee hearing that independent seed companies were increasingly being squeezed out by large multinational corporations.

The lawsuit adds to Bayer’s broader legal challenges tied to its agricultural business following its 2018 acquisition of Monsanto. The company continues to face thousands of lawsuits alleging that Roundup causes cancer. Bayer’s Crop Science division, which includes seeds and crop protection products, reported first-quarter earnings growth of 17.9% to 3 billion euros (USD 3.49 billion).

Sources: Reuters