Johnson and Johnson Hit with 147 Million Dollar Fine in Device Antitrust Case Shaking Medical Industry

Biosense Webster, a Johnson & Johnson subsidiary, has been ordered to pay $147 million in damages to Innovative Health, following a major antitrust verdict in the U.S. District Court for Central California. The case exposed how bundled sales tactics can be used to shut out competitors in the medical device sector.

At the heart of the case is the Carto3 heart mapping system, a widely used electrophysiology platform. Johnson & Johnson allegedly forced hospitals to buy brand-new proprietary catheters to access the system’s clinical support services—effectively sidelining reprocessed catheters supplied by Innovative Health, which had been approved by the FDA for reuse.

Innovative Health claimed the bundling strategy blocked hospitals from choosing cost-saving options, violating federal and state antitrust laws. In defense, Johnson & Johnson maintained that device safety and performance justified their integrated approach, arguing that clinical support is inseparable from the proprietary hardware—likening it to needing shoelaces with shoes.

The jury unanimously found Johnson & Johnson guilty of breaching both the Sherman Act and California’s Cartwright Act, citing illegal tying and exclusionary conduct aimed at preserving market dominance. The ruling, delivered on May 16, represents one of the largest antitrust judgments ever in the medical device sector.

The case, filed in 2022 and revived by the Ninth Circuit Court of Appeals in 2023, has sparked broader industry reflection. The Association of Medical Device Reprocessors (AMDR) lauded the verdict, emphasizing the need for fair competition and hospital compliance protections. AMDR’s CEO stated the ruling affirms the value of safe, cost-efficient reprocessed devices, which can reduce hospital costs by 30% while cutting down on waste.

As of now, Johnson & Johnson has yet to publicly respond, though it has signaled possible legal appeals. The outcome sends a strong warning: anti-competitive tactics will face judicial consequences.