Antitrust Practices and Market Power

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Submitted By ashleydavis10
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Dentsply International and Market Power
Ashley Davis
DeVry University

Dentsply International and Market Power The Congress passed antitrust laws in effort to protect competition in the market, as well as consumers whom are the ultimate recipients in the market (Novak, 2007). The case that will be discussed in this paper will be a company that was found guilty of violating section 2 of the Sherman Act, which focuses on people that are trying to monopolize the market for their own benefit, or someone that is trying to get complete control within an area of the economy. With the Sherman Antitrust Act in place, monopolization is very illegal and the act tries to prevent it from happening and protect competitors in the market (Novak, 2007). Dentsply International is a company that makes dental products, but their main product sold is false teeth. The company sells product in over 100 countries, so it is a very large company. The company sells its products to dealers, who then sell the false teeth and other products to dental labs. These labs then distribute the product to dentists with the supplies they need. If you don't include false teeth, the company supplies buyers with millions of dollars of products and dominated the artificial teeth market since they had close to 80 percent of the market share at the time they were being sued (Novak, 2007). Dentsply told their dealers that they had tell sell their supplies and deal primarily with them. When the Dentsply did that, it made many dealers unhappy, and was the reason for the antitrust action the government brought against them. This prevented dealers that carried Dentsply products from adding other tooth lines to their list of products they offered and if they refused to follow Dentsply demands, Dentsply could refuse to fill any more orders for that dealer (Novak, 2007). According to Novak, (2007), the…...

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