United States V. Dentsply International, Inc

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Name: Lei Chen
Course : ACCT 362W
Prof: Kenneth Ryesky Esq.
Date: 11/4/2010
Case Caption: United States v. Dentsply International, Inc., Court: United States of Appeals, Third Circuit.
Date: Argued September 21, 2004.
February 24, 2005
Citation: 399 F.3d 181
Facts:
This is an antitrust case that the defendant- Dentsply international, Inc., is one of a dozen manufactures of artificial teeth for dentures and other restorative device. Dentsply dominates the industry, his market share is greater than 75 percent and is about fifteen times larger than that of its next-closest competitor. The defendant use sells his teeth to dealers of dental products; then the dealers supply the teeth to dental laboratories, which fabricate dentures for sale to dentists. As the hundreds of dealer who compete with each other on the basis of price and service; some other manufactures sell their teeth directly to the laboratories basis of on the price and service; Dentsply prohibits its dealers from marketing competitor’s teeth unless they were selling the teeth before 1993. The plaintiff- the federal government files a suit in a federal district court against Dentsply, alleging, a violation of Section 2 of the Sherman Act. Issue:

Was the defendant’s preventing its dealer from selling competitors’ products restraint of trade and harm the market? Was the defendant’s act violating of section 2 of the Sherman Act? Decision:
Yes, the district court’s judgment was reversed and the case was remanded with directions to grant the government’s request for injunctive relief. Reason:
The Section 2 of the Sherman Act - the relevant market in this case was the total sales of artificial teeth to laboratories and dealers combined. The defendant’s act preventing its dealer from selling other competitors’ product was designed to block competitive distribution points, and to prevent giving the customer a choice. It was a plan to maintain monopolistic...
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