Attorney General Bonta Announces Settlement with Corteva to Restore Competition to Pesticide Market
OAKLAND — California Attorney General Rob Bonta joined the Federal Trade Commission (FTC) and a coalition of 12 attorneys general in securing a settlement with agricultural chemical company Corteva, Inc. resolving the lawsuit challenging the company’s use of loyalty rebate programs for crop-protection chemicals. The lawsuit alleged the programs restricted competition from lower-priced generic pesticides and contributed to inflated prices after patent and regulatory exclusivity periods expired. Under the settlement, Corteva will limit its loyalty programs to allow for generic competition, which will help restore competition to the pesticide market, and will pay $35 million to the plaintiff states.
“California farmers and small businesses deserve a competitive marketplace where they have access to affordable products and are not forced to pay higher prices because competitors have been shut out,” said Attorney General Bonta. "This settlement puts meaningful limits on practices that we alleged prevented lower-cost generic pesticides from competing in the marketplace. Especially amid a roaring crisis of affordability, my office will continue to protect Californians from anticompetitive practices that drive up costs.”
In September 2022, Attorney General Bonta joined the FTC and 11 other states challenging the anticompetitive practices of Corteva and Syngenta. The lawsuit alleged that the companies separately used loyalty rebate programs that required distributors to purchase 90% or more of their annual supply of certain active ingredients from the defendants in exchange for significant rebates. According to the lawsuit, these practices helped the companies maintain their market shares, artificially inflate prices, and limit the development and availability of competing, lower-priced generic products. California’s claims against Syngenta remain pending.
Under the settlement:
- Corteva will face limits on its loyalty rebate programs. Purchase thresholds will be capped at 50% for covered active ingredients, opening more of the market to competition from generic products.
- The restrictions will remain in place for 10 years, with reporting requirements designed to monitor Corteva’s compliance.
- Corteva will pay $35 million to the plaintiff states.
The settlement of this lawsuit is separate from an ongoing private class action that seeks to recover damages for California farmers.
In securing this settlement, Attorney General Bonta joins the FTC and the attorneys general of Colorado, Illinois, Indiana, Iowa, Minnesota, Nebraska, Oregon, Tennessee, Texas, Washington, and Wisconsin.
ANTITRUST AND YOU:
Antitrust enforcement is an essential component of a healthy economy. Competitive marketplaces established through antitrust vigilance help consumers by ensuring fair prices for goods and services, an array of products to choose from, quality goods and services, and the steady introduction of innovative new products. As part of the Attorney General’s commitment to enforce antitrust laws, the California Department of Justice has launched an Antitrust Complaint Form, where Californians can report anticompetitive conduct that potentially violates the antitrust laws.
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