Washington, D.C. — The Department of Justice Antitrust Division today announced new enforcement actions against Koch Foods, the fifth largest poultry processor in the U.S., for forcing chicken farmers to pay a penalty for shifting their business to one of Koch’s rivals. The penalties would require Koch to return the fees it unlawfully asked chicken growers to pay for switching. In response the American Economic Liberties Project released the following statement.

“It isn’t just unfair. It’s flat out extortion for one of the biggest chicken processors in the country to threaten smaller chicken growers with financial retribution for switching to one of its competitors,” said Erik Peinert, Research Manager and Editor at the American Economic Liberties Project. “We’re pleased to see the DOJ stand up for small and mid-sized farmers and growers by making clear that these tactics are illegal. With this action, we look forward to seeing the Antitrust Division work with the Department of Agriculture in order to promote a competitive food industry, free from financial intimidation.”

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.