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Cisco Faces Antitrust Lawsuit Over Alleged Monopoly Tactics in Networking Market

By  |  May 25, 2025

Technology giant Cisco Systems is facing new legal scrutiny after a U.S.-based independent reseller accused the company of using illegal tactics to dominate the network equipment market and limit competition, according to a complaint filed in federal court.

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    Summit 360, a Minnesota-based supplier of network hardware, filed the antitrust lawsuit on Thursday, alleging that Cisco unlawfully maintains control of the networking sector by coercing customers to purchase through its authorized resellers, thereby sidelining independent distributors. The complaint, filed in U.S. District Court in Minnesota, claims Cisco’s conduct has resulted in inflated prices and reduced choice for consumers.

    Per Reuters, the lawsuit argues that Cisco has deliberately limited access to its hardware operating system updates to only those customers who purchase through its official channels. This restriction, Summit 360 alleges, disadvantages independent resellers and stifles fair market competition.

    Summit 360 is seeking a court order that would put an end to what it describes as Cisco’s “abusive use of monopoly power,” claiming the company’s actions have disrupted an entire industry and damaged Summit’s business relationships and reputation. “Cisco has treated the independent channel as an enemy and has instructed its sales force to do the same,” the complaint states.

    Cisco, based in San Jose, California, denies any wrongdoing. In a statement cited by Reuters, the company said the case is without merit and pledged to “vigorously defend itself in court.” Cisco further accused Summit 360 of engaging in “illegal counterfeit trafficking activities,” an allegation that the reseller has not publicly responded to as of this publication.

    Summit 360 contends that as an independent vendor, it is capable of fulfilling orders more quickly and at lower costs than Cisco’s authorized dealers, providing critical value to small and medium-sized businesses. The lawsuit also claims Cisco’s actions interfered with a major business opportunity involving a publicly traded freight company, costing Summit a potentially lucrative contract.

    According to Reuters, Summit further claims that Cisco is attempting to claw back billions of dollars in potential revenue from the independent reseller space by tightening control over its distribution channels. The complaint also accuses Cisco of tarnishing Summit’s reputation by suggesting it is a problematic vendor, thereby deterring potential customers.

    Source: Reuters