Bayer Faces Antitrust Battle in California Over Pet Care Market Practices

A former unit of German life-sciences giant Bayer is confronting antitrust allegations in California federal court this week from a pet care startup claiming that the company attempted to obstruct competition for animal tick and flea treatments, Reuters reported. 

Jurors in San Jose federal court listened to opening statements on Monday in the antitrust case brought by Tevra Brands against Bayer Healthcare in 2019. Tevra’s lawsuit alleges that Bayer provided discounts to certain pet specialty retailers and distributors to ensure they exclusively carried its products, thereby excluding competitors from the market.

“Bayer made it harder and harder for retailers to carry generics,” Daniel Owen, an attorney representing Tevra, told the jury on Monday.

In defense, Bayer’s attorney Daniel Asimow argued that Tevra struggled because it was slow to enter the market and had weak relationships with retailers. He emphasized that Bayer competed fairly in a market teeming with competitors. “Generic companies have flourished — just not Tevra,” Asimow said.

The pet care antitrust trial, expected to last two weeks, sees Bayer denying any wrongdoing. Five years ago, Bayer sold its Bayer Animal Health unit to Elanco Animal Health (ELAN.N) in a $7.6 billion deal. Elanco, however, is not a defendant in this case. Bayer has referred all comments to Elanco, which did not immediately respond to requests for comment, Reuters reported.

Source: Reuters