Dentsply International, Inc., is one of a dozen manufacturers of artificial teeth for dentures and other restorative
Question:
Dentsply International, Inc., is one of a dozen manufacturers of artificial teeth for dentures and other restorative devices. Dentsply sells its teeth to 23 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 prohibits its dealers from marketing competitors’ teeth unless they were selling 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 the case? What should the court rule?
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