Key Moments
- Align Technology (NASDAQ:ALGN) stock declined 2% on Tuesday after the European Commission launched an antitrust investigation.
- The probe focuses on alleged tying of Align’s iTero intra-oral scanners with its Invisalign clear aligners in the European Economic Area.
- The investigation follows a complaint from a competitor and will review potential breaches of EU competition rules.
Regulators Scrutinize Align’s European Business Practices
Investing.com — Shares of Align Technology (NASDAQ:ALGN) fell 2% on Tuesday after the European Commission disclosed that it has initiated a formal antitrust investigation into the company. The inquiry centers on suspected tying of Align’s iTero intra-oral scanners to its Invisalign clear aligners within the European Economic Area.
The European Commission stated that the objective of the probe is to determine whether Align Technology’s conduct is in violation of EU competition regulations. The case was opened following a complaint submitted by a competitor, according to the Commission.
Focus on iTero Scanners and Invisalign Aligners
Align Technology, headquartered in the United States, produces both the iTero scanners and Invisalign clear aligners. Dentists and orthodontists use iTero scanners to obtain digital impressions of patients’ teeth, while Invisalign clear aligners are used to provide orthodontic treatment.
As part of the investigation, the European Commission will analyze whether Align Technology has obligated customers who buy its iTero scanners to also purchase or use its Invisalign products. This type of conduct, known as tying, can fall afoul of antitrust rules if it restricts competition.
Market Reaction
| Company | Ticker | Event | Market Reaction |
|---|---|---|---|
| Align Technology | NASDAQ:ALGN | EU antitrust investigation announced | Shares fell 2% on Tuesday |
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