W.J. Gore & Associates, Inc., the manufacturer of Gore-Tex, a waterproof, breathable membrane that is used in everything from tents to clothing for bikers and runners, has an estimated 70 to 90 percent of the outdoor sports waterproof gear market. Examples of companies that use Gore-Tex include Adidas, Bass Pro, Eco, LL Bean, Nike, Patagonia, Puma, Rockport, The North Face, Timberline, New Balance, Clarks, and Mephisto. However, several of Gore's competitors have alleged that Gore refuses to sell its products to companies that carry other brands such as the waterproof membranes offered by Columbia Sportswear Co.
Columbia alleges that its new product (Omni-Dry) is superior to the 40-year old Gore-Tex, but it is unable to get its foot int he door of these companies because they have agreed not to carry competitors' materials. Allegations also include information about Gore refusing to place its manufacturing with factories that do work for other manufacturers that compete with Gore. "This is the worst-kept secret in our industry.....Gore dictates what waterproof technologies they are allowed to offer consumers."
There are pending antitrust investigations int he United States and Europe. Discuss what antitrust issues you see. Make sure to explain your answer.
What are the ethical issues in Gore's alleged behavior?