This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Multiven Files Formal Antitrust Complaint Against Cisco Systems With The European Commission

ZURICH, September 10, 2013 /PRNewswire/ --

Multiven GmbH ("Multiven") today announces that on August 20, 2013, it filed a formal antitrust complaint against Cisco Systems ("Cisco") with the European Commission, in an effort to open up the Internet network maintenance services market for Cisco equipment, promote free and fair competition while ensuring consumer choice and value. Multiven's complaint alleges that Cisco abuses its dominant position to harm consumers by bundling and tying software bug fixes, patches and updates ("software updates") for its operating system and application software to its maintenance services (" SMARTnet") and through a series of other illegal exclusionary and anti-competitive acts designed to maintain Cisco's monopoly in the network maintenance services market for Cisco networking equipment, which represents 75% of the world's Internet infrastructure.

The complaint recites that instead of making these necessary and crucial software updates freely available to all customers that have purchased its operating system and application software licenses, as does Apple, Hewlett-Packard, Microsoft and many others, Cisco makes these software updates only available to those customers that have purchased, at additional costs, its SMARTnet service.


The complaint further alleges that Cisco also engages in a series of illegal exclusionary and anti-competitive acts such as, but not limited to coercing its 52,000 reseller partners, which includes Telecommunication and Internet Service Providers within the EEA, to refuse-to-deal with Multiven and not consume nor resell better quality and/or lower cost services from Multiven and other Cisco Independent Service Organization ("ISO") - that compete with Cisco SMARTnet.

These acts aimed at preventing ISOs like Multiven from servicing Cisco networking equipment have had the following anti-competitive and injurious effects within the European Union and EEA marketplace for Internet network services:

  • Competition in the multi-Billion Euro market for the service and maintenance of Cisco networking equipment has been suppressed and virtually eliminated. Additionally, ISOs have been effectively precluded from competing for and earning profits on the servicing of Cisco networking equipment.
  • Customers have been deprived of choice and forced to purchase Cisco SMARTnet maintenance services over that of substantially better quality and/or lower priced maintenance services from ISOs like Multiven; and 

  • Consumers have been harmed because supra-competitive prices have been maintained and increased, and the quantity, quality and choice of service offerings in the marketplace has been reduced and constrained. 



"Every cyber attack is an exploitation of a software defect." stated Peter Alfred-Adekeye, Multiven founder & CEO "Cisco's refusal to make all software updates freely available to all customers that have purchased its software not only stifles free and fair competition but also puts the Internet at risk of avoidable cyber attacks on a daily basis".

Multiven President Deka Yussuf said: "Another prime example of Cisco's abuse of its dominant position is its ongoing resistance to the global adoption of cost saving innovations like Software Defined Networking"



Multiven was established in 2005 to provide businesses using all brands of Internet networking equipment with reasonably priced, cutting-edge maintenance services to keep their networks running smoothly. But owners of Cisco hardware are reluctant to engage Multiven or other independent maintenance providers to maintain their Cisco equipment, because without SMARTnet, they cannot reasonably access essential Cisco software bug fixes. 



1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs