A PYMNTS Company

US: FTC finds merger of prosthetic knee companies anticompetitive

By  |  November 7, 2019
FTC Front

The Federal Trade Commission issued an Opinion and Final Order in which the Commission upholds the Administrative Law Judge’s decision that the consummated acquisition of Freedom Innovations by Otto Bock HealthCare North America, Inc.—both top sellers of prosthetic knees equipped with microprocessors or MPKs—resulted in anticompetitive harm in the microprocessor prosthetic knee market, likely leading to higher prices and less innovation for amputee patients and prosthetic clinic customers. The acquisition was not reportable under the Hart-Scott-Rodino Act. The Commission’s order requires Otto Bock to divest the Freedom Innovations assets to an FTC-approved buyer.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Commission’s Opinion and Final Order states, “Based on our de novo review of the facts and law in this matter, we find that the Acquisition is likely to, and indeed already has, substantially lessened competition in the relevant market for MPKs… We hold that, to fully restore the competition lost from the Acquisition, [Otto Bock] must divest Freedom’s entire business with the limited exceptions granted by the [Administrative Law Judge].”

    The Commission’s order represents the first time that the current Commission ordered that a consummated acquisition be unwound.

    Full Content: FTC

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.