Multiven charges Cisco with bundling and tying, other anticompetitive acts
Jan 30, 2012
Switzerland-based Multiven has filed allegations of abuse of dominance against Cisco with the Swiss Competition Commission. According to the complaint, Cisco bundled and tied necessary software updates to its maintenance services, SMARTnet. Such patches and updates are available only to customers that have purchased SMARTnet. As a result, Cisco excluded rivals from the network maintenance services market for Cisco equipment, which comprises 75% of the world's Internet infrastructure.
In addition to the bundling and tying, the complaint also charges Cisco with refusal to deal with Multiven, voiding software licenses of customers who obtained Cisco equipment from non-Cisco sources, and other anticompetitive acts.
Related content: Bundling as Exclusionary Pricing to Maintain Monopoly (Jonathan Rubin, Rubin PLLC)