Tag: Nonmerger

Cardinal Health, Inc. agreed to resolve charges that it illegally monopolized 25 local markets for the sale and distribution of low-energy radiopharmaceuticals and forced hospitals and clinics to pay inflated prices for these drugs. According to the FTC’s complaint, through separate acquisitions in 2003 and 2004, Cardinal became the largest operator of radiopharmacies in the United States and the sole radiopharmacy operator in 25 metropolitan areas. Between 2003 and 2008, Cardinal employed various tactics to coerce and induce two suppliers to refuse to grant distribution rights for their respective heart perfusion agents products to new competitors in the relevant markets. As a result of these tactics, the complaint alleges that Cardinal obtained de facto exclusive distribution rights to the only HPAs available on the market and prevented numerous potential entrants from gaining access to these radiopharmaceuticals. The stipulated order requires Cardinal to pay $26.8 million of ill-gotten gains and represents the second largest monetary settlement the FTC has obtained in an antitrust case. The money will be deposited into a fund for distribution to injured customers. The order also includes provisions to prevent future violations and restore competition in six markets where Cardinal remains the dominant radiopharmacy.

An association representing skating teachers agreed to eliminate provisions in its bylaws that the FTC alleged limit competition among the association’s members. In its complaint, the FTC charged that the Professional Skaters Association, through its code of ethics, broadly bans members from soliciting other members’ students, and thereby deprives consumers of the benefits of competition among the 6,400 ice skating teachers and coaches who are members. According to the complaint, the PSA instructed its members that this code provision prohibited coaches from many types of direct and indirect communications with skaters and parents, and actively enforced the ban through a variety of penalties, including suspension, even over the objections of skating students and their parents who wanted to switch coaches. The consent order settling the FTC’s charges requires the Professional Skaters Association to stop restraining its members from soliciting work and competing on the basis of price. It also requires the group to change its code of ethics, publicize its settlement with the FTC, and implement an antitrust compliance program.

An association representing electricians agreed to eliminate provisions in its bylaws that the FTC charged limit competition among each association’s members. The FTC alleged that the purpose and effect of the association's bylaws has been to restrain competition by discouraging and restricting competition among PLASMA members. The consent order settling the FTC’s charges requires PLASMA to revise its bylaws, publicize its settlement with the FTC, and implement an antitrust compliance program.