Sun says that it is operating legally and that it is not acting
anti-competitively. The complaint is being made against Sun's UK
subsidiary by the Association of Service and Computer Dealers
International (ASCDI), which represents computer resellers.
ASCDI claims that in 2006 Sun began to ban the reselling in
Europe of any of its products that were not originally made
available for sale in Europe. It says that Sun insisted that to
sell products in Europe not licensed originally for sale there
would be trade mark infringement.
Sun then stopped giving resellers information about what
machines were originally made available for sale in Europe, says
ASCDI, meaning that its members could not safely sell any Sun
equipment in Europe.
"[Sun] began a policy of refusing to provide such information
whenever requested by independent resellers," said an ASCDI
statement. "The ASCDI supports Sun’s legitimate trade mark rights,
but Sun has made it impossible to know whether a given Sun product
is or has been placed on the EEA market with Sun’s consent."
“Sun’s policy effectively closes the secondary market trade in
Sun products to anyone other than Sun. It is anti-competitive
behaviour plain and simple,” said ASCDI president Joe Marion.
The body says that every other major manufacturer, including
IBM, HP and Cisco, makes the data, called provenance information,
available to resellers.
ASCDI's complaint to the OFT claims that Sun's behaviour is
prohibited under Chapter II of the Competition Act. That chapter
deals with abuse of a dominant position.
Sun rejects the charge that it is acting illegally. "Sun has not
seen the complaint or been contacted by the OFT," said a Sun
statement. "It appears, however, that the basis of ASCDI’s
complaint is that by taking perfectly legitimate steps to enforce
its registered trade mark rights and by declining to make
commercially sensitive sales information publicly available, Sun
has in some way breached the UK Competition Act 1998."
"Sun categorically denies that it is in any way acting in an
anti-competitive manner or that its actions amount in any sense to
an abuse of any dominant market position. In the event that the OFT
decides that the complaint by the ASCDI is worthy of further
investigation Sun will of course co-operate fully with the
inquiry," it said.
ASCDI's complaint says that Sun's behaviour has had a real impact
on the market. "As a result of Sun’s policy not to disclose
provenance information, there is diminished competition in the
secondary market for Sun products," said its summary of its
complaint. "Some independent resellers have had to make costly
transitions of their businesses to other products. Some have been
left holding large inventories of Sun products that can not be sold
or will sell at reduced values, and at least one reseller has gone
out of business."
"Customers' and end users’ market choices for Sun products are
limited. As the secondary market retracts, prices for new and used
Sun equipment will rise and residual values decline," it said.
The complaint asks that Sun provide the information without fees
to resellers, and without notifying its own sales teams of what
information has been provided.
