Halozyme, Inc.’s Post

In the dynamic realm of pharmaceutical manufacturing, collaboration and assistance are essential. It's concerning to note a growing tendency among certain tablet press manufacturers to decline servicing machines with competitors' parts or cast doubt on warranty validity due to the use of such parts. These practices ultimately restrict customers' ability to make informed decisions and impede process efficiencies. This begs the question: Why? At Natoli Engineering Company, Inc., we firmly believe that every pharmaceutical manufacturer deserves access to reliable service and support, regardless of the parts they choose to purchase. Such actions hinder the progress and efficiency of solid dose production. OEMs refusing to service, or making threats of invalidating the warranty, constitutes anti-competitive behavior and violates state and federal anti-trust laws in the US and Europe. In the United States, antitrust laws are in place to promote fair competition and prevent monopolistic practices. Refusing to service a machine or threatening to void its warranty because of the use of competitor parts could be viewed as an attempt to limit competition, which violates these laws. Depending on the specific circumstances, these actions may be prosecuted under the Sherman Antitrust Act, the Clayton Antitrust Act, or the Federal Trade Commission Act. Similarly, Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) prohibit anti-competitive business practices in the European Union. Article 101 prohibits agreements that restrict competition, including those between manufacturers and service providers that restrict the use of competitor parts or services. Article 102 prohibits abuse of a dominant market position, including refusing to service machines or threatening to void warranties to maintain market dominance or exclude competitors. Dale Natoli

In the dynamic realm of pharmaceutical manufacturing, collaboration and assistance are essential. It's concerning to note a growing tendency among certain tablet press manufacturers to decline servicing machines with competitors' parts or cast doubt on warranty validity due to the use of such parts. These practices ultimately restrict customers' ability to make informed decisions and impede process efficiencies. This begs the question: Why? At Natoli Engineering Company, Inc., we firmly believe that every pharmaceutical manufacturer deserves access to reliable service and support, regardless of the parts they choose to purchase. Such actions hinder the progress and efficiency of solid dose production. OEMs refusing to service, or making threats of invalidating the warranty, constitutes anti-competitive behavior and violates state and federal anti-trust laws in the US and Europe. In the United States, antitrust laws are in place to promote fair competition and prevent monopolistic practices. Refusing to service a machine or threatening to void its warranty because of the use of competitor parts could be viewed as an attempt to limit competition, which violates these laws. Depending on the specific circumstances, these actions may be prosecuted under the Sherman Antitrust Act, the Clayton Antitrust Act, or the Federal Trade Commission Act. Similarly, Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) prohibit anti-competitive business practices in the European Union. Article 101 prohibits agreements that restrict competition, including those between manufacturers and service providers that restrict the use of competitor parts or services. Article 102 prohibits abuse of a dominant market position, including refusing to service machines or threatening to void warranties to maintain market dominance or exclude competitors. Written by Dale Natoli

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