New lawsuit accuses Cisco of monopolizing key network product markets

By Mike Scarcella

May 23 (Reuters) - A Cisco CSCO.O U.S. equipment reseller has accused the technology giant in a new lawsuit of illegally maintaining market power and control of the networking industry, causing customers to pay higher prices.

Network equipment supplier Summit 360 filed its lawsuit against Cisco on Thursday in federal court in Minnesota.

The complaint said Cisco violated antitrust law by intimidating and coercing customers into purchasing equipment only through the company’s authorized resale channels, and not independent ones like Summit 360.

Cisco, according to the lawsuit, also restricted its hardware operating system updates only to purchases made through its stable of contract resellers and sales representatives.

Summit 360 said it was seeking a court order “to bring an end to this abusive use of monopoly power that has terrorized an entire industry and to hold Cisco accountable.”

Cisco and Summit 360 did not immediately respond to requests for comment.

Cisco is one of the largest makers of technology that powers computer networks, including switches and routers. Minnesota-based Summit 360 sells networking products from Cisco and its rivals.

As an independent reseller, Summit 360 said it can fulfill orders faster than Cisco and at lower prices, giving small businesses more choice.

“Cisco has treated the independent channel as an enemy and has instructed its sales force to do the same,” Summit 360’s lawsuit said.

Summit 360 said in the lawsuit that Cisco’s pressure interfered in a potential lucrative contract between Summit and a publicly traded freight operations company.

San Jose, California-based Cisco is trying to recapture billions of dollars in revenue annually in the independent reseller market, Summit 360 said.

The lawsuit said Cisco has damaged Summit 360’s reputation in the networking industry by portraying the company “as an unworthy sales partner who causes the customers’ problems.”

Summit 360 asked a judge to award unspecified damages and to issue an order barring any further alleged anticompetitive conduct by Cisco.

The case is Summit 360 Inc v. Cisco Systems Inc, U.S. District Court, District of Minnesota, No. 25-cv-02202.

For plaintiff: Matthew Bruno, Dylan Carson and Amar Thakur of Manatt, Phelps & Phillips, and Stephen Safranski of Robins Kaplan

For defendant: No appearance yet

Read more:

Juniper Networks denies allegations in US DOJ lawsuit to block $14 billion merger with HPE