In December 2021, the FTC completed its investigation into the Agreement, which amalgamated the businesses of Medical Disposables & Supplies Limited and Cornwall Medical & Dental Supplies Limited to form Cornwall Enterprises Limited.
The investigation was conducted to determine whether the transaction breached section 17 of the Fair Competition Act (FCA) which prohibits agreements which contain provisions that have as their purpose the substantially lessening of competition, or have or are likely to have the effect of substantially lessening competition in a market.
The relevant market was defined as the market for medical disposable items sold in Jamaica. The FTC concluded that the Agreement does not have the effect or likely effect of substantially lessening competition in the relevant market because (i) it involved an enterprise with a relatively small market share; and (ii) competitive entry is likely to mitigate, if not avert, anticompetitive conduct due to the easy conditions of entry. Additionally, the Agreement does not have the purpose of substantially lessening competition in the market. Its purpose was to facilitate the expansion of Medical Disposables and Supplies Limited in a new market and facilitate financial relief for Cornwall Medical and Dental Supplies Limited.
The overall conclusion is that the Agreement is unlikely to breach any provision of the Fair Competition Act.
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