Antitrust Lawsuit: Snack Makers Challenge David Protein’s Market Dominance

In a compelling legal battle, three snack manufacturers have filed a third amended complaint in an ongoing antitrust lawsuit against David Protein. The plaintiffs allege that the company has restricted competition and established an artificial monopoly within the burgeoning protein bar market.

The Origins of the Dispute

The controversy ignited last summer following David Protein’s acquisition of Epogee, a company known for its patented ingredient, EPG. This innovative component mimics fat in terms of texture and functionality but boasts a fraction of the calories, measuring at just 0.7 calories per gram.

Claims from Affected Companies

The plaintiffs—OWN Your Hunger, Lighten Up Foods, and Defiant Foods—assert that they built their businesses around EPG, only to find themselves cut off abruptly. They claim to have invested a collective $449,000 in research and development for EPG-based products, which they now cannot adapt. Furthermore, they allege a loss of $107,000 in confirmed sales and have written off over $85,000 in specialized inventory, including packaging that inaccurately claims calorie content if used with different ingredients.

David Protein’s Defense

In response, David Protein asserts that there are ample alternatives to EPG available for formulators. The company claims it is not obligated to supply EPG to businesses that have not entered into long-term contracts, which the plaintiffs argue were never offered.

Legal Developments

U.S. District Judge Victor Marrero has sided with David Protein on several occasions, but has recently permitted the plaintiffs to file a third amended complaint to address what he deemed deficiencies, particularly concerning the market definition in which David operates.

Defining the Market

The newly filed complaint identifies the relevant antitrust market as high-calorie-from-protein (CFP) protein bars, where 50-75% of calories are derived from protein. The plaintiffs argue that without access to EPG, competitors will struggle to create protein bars within this range, which they claim David Protein currently monopolizes.

Implications of the Acquisition

The complaint asserts that prior to the acquisition of Epogee, at least five companies were preparing to launch competing high-CFP protein bars that would be offered at lower prices. After the acquisition, the plaintiffs claim that David Protein is the sole producer of protein bars exceeding this price ceiling. “No competitor can replicate David’s product without EPG,” they emphasize.

Seeking Justice

The plaintiffs are pursuing damages and injunctive relief aimed at restoring competition in the protein bar market. They claim that David Protein has gained monopolistic control not through superior products or business practices but by acquiring the only source of EPG and refusing to sell it to other companies.

Understanding EPG

• EPG (esterified propoxylated glycerol): A low-calorie fat replacement with only 0.7 calories per gram, compared to 9 calories for traditional fats.
• Not Olestra: Unlike Olestra, EPG does not possess the same adverse effects and functions more effectively, as it is derived from actual fat.
• Low-calorie Profile: EPG is resistant to lipase, an enzyme that breaks down fats, resulting in minimal caloric release.
• Food Labeling: EPG can be identified on food labels as ‘EPG (modified plant-based oil).’
• Production Method: Epogee processes plant-based oils like canola to create EPG through chemical modification.

Case Information

The case, involving OWN Your Hunger, Lighten Up Foods, and Defiant Foods against Linus Technology (operating as David Protein), Epogee, and Peter Rahal, was filed in the Southern District of New York on June 2, 2025. Case: 1:25-cv-04544

Further Reading

• David Protein scores initial victory in antitrust case over EPG fat replacer; plaintiffs say battle isn’t over
• More EPG customers share tales of woe in David Protein, Epogee litigation
• Peter Rahal, David Protein, sued over ‘bait & switch’ scheme to monopolize Epogee’s fat replacer
• Protein bar maker David acquires novel fat maker Epogee, raises $75m Series A on back of ‘explosive’ growth