Amazon Faces DOJ Scrutiny Over Beef Pricing Amid Record Highs
The US Justice Department has expanded its antitrust inquiry into the meatpacking industry by demanding information on surging beef prices from eight major food retailers, including Amazon and Walmart.
According to a recent correspondence, the DOJ is seeking six years' worth of data covering procurement practices, consumer pricing structures, profitability metrics, and competitive market assessments from each company.
The probe initially focused on meat processing companies, where four dominant firms control over 85% of American beef processing capacity. However, federal authorities have now widened their investigation to include major retailers like Amazon, which joins seven other prominent grocery chains in receiving data requests.
Ground beef prices hit a record high of $7.116 per pound in July, representing a 9.4% year-over-year increase and nearing historic peaks. The American cattle inventory has declined to levels not seen since the 1950s, contributing to upward pressure on beef costs independent of any potentially questionable pricing behaviors.
Amazon's shares began trading at $254.98 on Thursday, with a market capitalization of $2.75 trillion and a 52-week bandwidth of $196.00 to $287.20.