News | May 16, 2024

Natoli Engineering Addresses Concerns On Tablet Press OEM's Refusing Client Service

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St. Charles, MO – 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, 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.

The US and the EU prioritize fair competition to foster innovation, lower prices, and increase consumer choice. By refusing to service machines or threatening warranty invalidation based on the use of competitor parts, manufacturers may be engaging in practices that harm competition and ultimately harm consumers.

Pharmaceutical manufacturers and service providers must adhere to antitrust laws and regulations to foster equitable and transparent competition, fostering mutual gains for enterprises and consumers. It's expected that original equipment manufacturers (OEMs) may assert that non-OEM parts caused adverse outcomes. However, the reality is that numerous OEMs outsource their part production to third parties, making it impossible for them to assure superior outcomes from these third-party manufactured parts.

At Natoli Engineering, we pride ourselves on our commitment to quality and innovation. Our parts are meticulously designed and rigorously tested to ensure seamless integration and optimal performance, meeting and often exceeding quality standards.

We want to hear from you if you've experienced challenges with competitors refusing to service machines with Natoli parts. We will keep your information confidential.

Let's work together to ensure that the pharmaceutical industry continues to move forward, driven by collaboration and a shared commitment to excellence. It takes us all.

About Natoli Engineering

Natoli Engineering Company, Inc. is the world-renowned leader in tablet compression tooling, presses, parts, accessories, and services for the pharmaceutical, nutraceutical, veterinary, and dietary supplement industries. Founded on the uncompromising principle of delivering quality equipment and services, Natoli Engineering continually pushes the envelope with innovative products and services that advance the industry. Learn more at www.natoli.com.

Contact

Dale Natoli, Natoli Engineering
Dale@Natoli.com

Source: Natoli Engineering Company, Inc.

Natoli Engineering Company, Inc.