Financial Times- DoJ urged to complete Monsanto case

August 10, 2010

By Stephanie Kirchgaessnar

Top Democratic lawmakers on Monday urged the Department of Justice to “expeditiously complete” its antitrust investigation into Monsanto, injecting a dose of politics into what could become the Obama administration’s most significant competition case.

Monsanto has been under scrutiny by antitrust officials at the DoJ since October last year. At the centre of the investigation are questions about whether the St Louis-based maker of genetically modified seeds has legally used its cutting-edge technology to become a dominant force in the agricultural industry, or whether it has illegally used patent protections to engage in anti-competitive behaviour.

If the DoJ decides to bring a case against the company, it could rival the Clinton administration’s landmark case against Microsoft, legal experts say. Lobbyists for farming interests and Monsanto’s corporate rivals have encouraged the DoJ to examine the company’s patent for a biotech trait known as Roundup Ready, a blockbuster soyabean product that is set to expire in 2014.

At the heart of the DoJ probe are questions about whether Monsanto is prepared to make Roundup available to farmers and competitors once the product’s patent expires. The company on Monday said the DoJ was in the process of reviewing information provided by Monsanto. The comment indicated that the DoJ has not yet formally indicated whether it is likely to pursue a case.

Democratic lawmakers on Monday urged the DoJ to speed up their probe. Four senators led by Herb Kohl, chairman of the Senate antitrust subcommittee, said in a letter to Christine Varney, the head of the DoJ’s antitrust division, that the swift conclusion of the department’s investigation would be “vital” to the emergence of generic versions of Roundup.

In a nod that appeared to support farmers and Monsanto rivals, the lawmakers said generic entry into the market would promote further competition in the biotech sector and ensure farmers had access to seeds that were optimised for their growing conditions.

The letter underscored the gravity of the probe and the competing political and business interests that may be affected by its outcome.

Monsanto has said the allegations echo claims that are being litigated between the company and rival DuPont, which alleged that Monsanto’s activities in the soyabean market are anticompetitive.

“Monsanto continues to co-operate with the US Department of Justice inquiries so that their questions can be resolved as quickly as possible,” said Scott Partridge, Monsanto’s chief deputy general counsel.

“We respect the thorough regulatory process. We believe our business practices are fair, pro-competitive and in compliance with the law.”

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