Dentsply International, Inc., is one of a dozen manufacturers of artificial teeth for dentures and other restorative devices. Dentsply sells its teeth to twenty-three dealers of dental products. The dealers supply the teeth to dental laboratories, which fabricate dentures for sale to dentists. There are hundreds of other dealers who compete with each other on the basis of price and service. Some manufacturers sell directly to the laboratories. There are also thousands of laboratories that compete with each other on the basis of price and service. Because of advances in dental medicine, however, artificial tooth manufacturing is marked by low growth potential, and Dentsply dominates the industry. Dentsply?s market share is greater than 75 percent and is about fifteen times larger than that of its next-closest competitor. Dentsply prohibits its dealers from marketing competitors? teeth unless they were selling the teeth before 1993. The federal government filed a suit in a federal district court against Dentsply, alleging, among other things, a violation of Section 2 of the Sherman Act. What must the government show to succeed in its suit? Are those elements present in this case? What should the court rule? Explain.
This question was answered on: Jul 11, 2017
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