• Teeth Knocked Out of Exclusive Dealing Contracts -- Third Circuit Condemns At-Will Sales Conditioned on Exclusivity
  • March 20, 2005 | Authors: Paul T. Denis; Michael D. Farber; Rebecca P. Dick; James A. Fishkin
  • Law Firm: Dechert LLP - Washington Office
  • The Third Circuit Court of Appeals recently held that Dentsply's longstanding policy of refusing to sell its artificial teeth to any dealer that also sold a competing brand violated ยง2 of the Sherman Act. Reversing a lower court decision that had rejected a rare DOJ challenge to exclusive dealing practices, the Third Circuit held that exclusive dealing "can be an improper means of maintaining a monopoly" if: (1) the firm imposing exclusivity has monopoly power, (2) exclusivity has anticompetitive effects, and (3) there is no business justification for the practice.