Cisco anti-competitive practices lawsuits: Difference between revisions

Cisco distributes its networking equipment primarily through what the ''Summit 360'' complaint describes as an "Authorized Channel" of contracted resellers and distributors, which the complaint states consists of more than 8,000 organizations in the United States.<ref name="Summit360Complaint" /> Alongside this authorized channel, an "Independent Channel" of resellers (sometimes referred to as the secondary or grey market) supplies new and used Cisco-branded equipment to end users, generally at lower prices and with shorter lead times than Cisco's authorized partners. Independent resellers also frequently sell equipment from Cisco's competitors, including Juniper Networks, Arista Networks, and Hewlett Packard Enterprise.<ref name="computerworld-aftermarket">{{cite news |last=Cox |first=John |date=2007 |title=Cisco set to fight aftermarket sellers |url=https://www.computerworld.com/article/1650570/cisco-set-to-fight-aftermarket-sellers.html |url-status=live |archive-url=https://web.archive.org/web/20260430014150/https://www.computerworld.com/article/1650570/cisco-set-to-fight-aftermarket-sellers.html |archive-date=2026-04-30 |access-date=2025-04-29 |work=Computerworld}}</ref><ref name="packetpushers-graymarket">{{cite web |last=Conran |first=Greg |date=January 26, 2024 |title=Aspects Of The Gray Market For IT Gear |url=https://packetpushers.net/blog/aspects-of-the-gray-market-for-it-gear/ |url-status=live |archive-url=https://web.archive.org/web/20241205001926/https://packetpushers.net/blog/aspects-of-the-gray-market-for-it-gear/ |archive-date=2024-12-05 |access-date=2026-04-29 |publisher=Packet Pushers}}</ref><ref name="register-cdw">{{cite news |last=Robinson |first=Dan |date=January 15, 2024 |title=CDW settles in lawsuit with rival reseller over Cisco sales |url=https://www.theregister.com/2024/01/15/cdw_settles_in_lawsuit/ |url-status=live |archive-url=https://web.archive.org/web/20260117004228/https://www.theregister.com/2024/01/15/cdw_settles_in_lawsuit/ |archive-date=2026-01-17 |access-date=2026-04-29 |work=The Register}}</ref>

Cisco's principal service contract for end users is marketed as "SmartNet." A SmartNet contract typically provides software updates, technical support, and hardware replacement for covered equipment.<ref name="cisco-smartnet-qa">{{cite web |title=Cisco SMARTnet Service Q&A |url=https://dam.assets.ohio.gov/image/upload/das.ohio.gov/technology-strategy/next-generation-telephony-service/technical-implementation/service-details/Cisco%20Smartnet%20Service.pdf |url-status=live |archive-url=https://web.archive.org/web/20260430015918/https://dam.assets.ohio.gov/image/upload/das.ohio.gov/technology-strategy/next-generation-telephony-service/technical-implementation/service-details/Cisco%20Smartnet%20Service.pdf |archive-date=2026-04-30 |access-date=April 29, 2026 |publisher=Cisco Systems, Inc.}}</ref> The complaints state that customers without an active SmartNet contract may lose access to security and operational updates necessary for their equipment to continue functioning properly, leaving most enterprise customers effectively dependent on the contract.<ref name="law360-filing">{{cite news |last=Atkins |first=Dorothy |date=April 28, 2022 |title=Cisco Accused Of Using Coercion To Maintain Monopoly |url=https://www.law360.com/articles/1488140/cisco-accused-of-using-coercion-to-maintain-monopoly |url-status=live |archive-url=https://web.archive.org/web/20250722162939/https://www.law360.com/articles/1488140/cisco-accused-of-using-coercion-to-maintain-monopoly |archive-date=2025-07-22 |access-date=April 29, 2026 |work=Law360}}</ref><ref name="Summit360Complaint" />