FTC files complaint against Schein, Benco, Patterson over alleged denial of biz to buying groups

The U.S. Federal Trade Commission this week filed a complaint against Henry Schein (NSDQ:HSIC), Patterson (NSDQ:PDCO) and Benco alleging violations of US antitrust law by conspiring to refuse to provide discounts to or to serve buying groups representing dental practitioners, according to a new FTC posting. The three companies, which the FTC claims control more than 85% of all dental product distributor sales in the US, face allegations that they denied independent benefits of such buying groups to dental practices mostly composed of small businesses, including solo or small groups of dentists. Benco and Henry Schein allegedly entered into an agreement to refuse to provide discounts to such groups, or to compete for the business of buying groups, according to the FTC. In its full complaint, the FTC said it has detailed communications between executives at the two companies that provide evidence of the agreement, as well as attempts to “monitor and ensure compliance with the agreement.” The FTC’s complaint goes on to assert that Patterson also joined the agreement looking to deny discounts to the buying groups. “Based on the agreement among the distributors, the complaint contends that Benco, Henry Schein and Patterson unreasonably restrained price competition for dental products in the United States; distorted prices and undermined the ability of independent dentists to obtain lower prices and discounts for dental products; deprived independent dentists...
Source: Mass Device - Category: Medical Devices Authors: Tags: Dental Distribution Legal News benco Federal Trade Commission (FTC) Henry Schein Inc. Patterson Companies Source Type: news