United States v. Dentsply International, Inc.
United States Court of Appeals for the Third Circuit
399 F.3d 181 (2005)
Dentsply International (defendant), which sold 75 to 80 percent of the artificial teeth used by dental laboratories in a market of only 12 or 13 manufacturers, began in 1993 terminating relationships with any dealer who also stocked a competitor's teeth. Because no dealer could afford to lose Dentsply as a supplier, every major dealer became an exclusive Dentsply customer even though many would have preferred to carry multiple brands. The government (plaintiff) sued for an injunction under § 2 of the Sherman Act; the district court held Dentsply's policy did not foreclose competition in the relevant market, and the government appealed.
Whether, under antitrust law, an exclusive-dealing arrangement is unlawful when the accused firm uses it to maintain monopoly power.