Open Markets Institute Files Amicus Brief in Ninth Circuit Challenging Monopoly in Surgical Robot Market
“The outcome of this case could decide whether other monopolistic manufacturers are allowed to freely take over markets for parts and service at the expense of independent rivals and consumers.”
WASHINGTON, DC — The Open Markets Institute filed an amicus brief in the Ninth Circuit Court of Appeals warning that Intuitive Surgical is exploiting its monopoly over surgical robots to dominate markets for essential accessories—posing serious risks to hospitals, doctors, and patients.
The brief, authored by Open Markets Legal Director Sandeep Vaheesan and Policy Counsel Tara Pincock, urges the court to reverse a district court ruling that allows Intuitive Surgical to continue blocking independent servicing of the EndoWrist, an essential accessory for using its da Vinci robot in surgical procedures.
The case, Surgical Instrument Service Co. v. Intuitive Surgical, raises urgent antitrust questions about the exceptional power of monopolists like Intuitive Surgical to extend their market grip from equipment to parts and repair services.
“Companies with monopoly positions are, under the law, held to a higher standard than firms in unconcentrated markets—and the district court failed to apply this principle and made a critical error. With near-total control of the surgical robot market, Intuitive Surgical has the power to take over lucrative markets for accessories, parts, and service. If it faced rivalry in the market for surgical robots, it would not have the same unchecked power to dominate these markets,” says Vaheesan.
“Allowing firms like Intuitive to monopolize aftermarkets can have dangerous effects in markets like healthcare, in which fair competition can drive higher quality care and keep costs in check. The outcome of this case could decide whether other monopolistic manufacturers are allowed to freely take over markets for parts and service at the expense of independent rivals and consumers.”
Open Markets has published works on unfair competitive practices, including in markets for parts and services, and called for an approach that holds dominant firms accountable and prioritizes the interests of independent businesses, workers, and consumers over the privileges of corporate executives and financial interests.
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