The Federal Trade Commission announced on Mar. 17 that Alcon, Inc. and Alcon Research, LLC have abandoned their plans to acquire LENSAR, Inc., following an investigation by the agency’s Bureau of Competition.
The decision is significant because it preserves competition in the market for femtosecond laser-assisted cataract surgery (FLACS) devices. The FTC said that both companies are leading players in this sector and had been engaged in a price war that benefited doctors and patients alike.
Daniel Guarnera, Director of the FTC’s Bureau of Competition, said: “The Bureau’s American Competition Enforcement (ACE) Division identified substantial competitive concerns with this transaction, which would have combined the two most significant players in the market for laser systems used in femtosecond laser-assisted cataract surgery, known as FLACS. Alcon and Lensar were locked in a price war that had already benefited doctors offering FLACS-assisted cataract procedures, as well as their patients. The vigorous competition between Alcon and Lensar had also spurred innovation in the FLACS market.”
Guarnera continued: “Competitors simply cannot attempt to buy out rivals to get out from the heat of pricing and innovation competition. I’m proud of the work done by ACE in this investigation, which produced evidence of consumer harm so substantial that the merging firms threw up a white flag rather than risk facing the FTC in court. ACE’s work will help preserve price competition for FLACS devices, promote innovation in this industry, and protect American manufacturing jobs.”
He also thanked colleagues at the Bureau of Economics and Florida Attorney General’s Office for their contributions to the investigation. “The Bureau of Competition and its state partners will remain vigilant in protecting Americans from bad deals,” Guarnera said.
The FTC continues its mission to promote competition while protecting consumers through education and enforcement actions.
