Invibio signed a settlement agreement with the U.S. Federal Trade Commission to resolve antitrust allegations, according to a Mondaq report.
Here are nine key notes:
1. Invibio settled with the FTC to resolve allegations that the company used exclusive supply agreements to maintain its monopoly in the high-tech polymer material market.
2. Invibio was the sole supplier of the implant-grade PEEK polymer until the late 2000s, when Solvay Specialty Polymers and Evonik entered the market.
3. Solvay and Evonik began selling PEEK polymer at prices lower than Invibio.
4. Invibio allegedly tried to broaden the exclusivity provisions in its customer agreements.
5. According to the FTC complaint, the company allegedly threatened to withhold PEEK supply to existing products for customers if they did not accept the provisions. These tactics allowed Invibio to maintain a 90 percent market share with high prices for PEEK.
6. The FTC has proposed a consent order that would prohibit Invibio, and its parent company Vitrex, from entering into contracts with certain exclusive clauses in the future.
7. The consent order also allows consumers to modify existing contracts. Additionally, it requires Invibio to set up an antitrust compliance program for employees.