Honeywell Sues Alarm.com For Violating Anti-Trust Laws (Settled)

Author: John Honovich, Published on Feb 24, 2017

Is Alarm.com about to dominate the smart home software market?

That is what Honeywell alleges in its new lawsuit, first reported by CEPro.

Honeywell's complaint declares:

As a result of the proposed acquisition, Alarm.com would have approximately a 70% share in the market for the provision of Remote Services for dealer installed security systems. The creation of such concentration, which would injure competition, stifle innovation, and result in higher prices to consumers, is presumptively illegal. [emphasis added]

Inside this post, we share Honeywell's full complaint / filing, analyzing its claims (including Honeywell going open, their fears about being 'crippled', the critical role of ADT and Qolsys, the 'vicious cycle' they face) and its potential impact in the fast growing and critical smart home segment of the alarm / RMR business.

[Update: The lawsuit is settled. Analysis Inside.]

** *****.*** ***** ** ******** *** ***** **** ******** ******?

**** ** **** ********* ******* ** *** *** *******,***** ******** ** *****.

*********'* ********* ********:

** * ****** ** *** ******** ***********, *****.*** ***** **** approximately * **% ***** ** *** ****** *** *** ********* of ****** ******** *** ****** ********* ******** *******. *** ******** of **** *************, ***** ***** ****** ***********, ****** **********, *** result ** ****** ****** ** *********, **presumptively *******. [emphasis added]

****** **** ****, ** ***** *********'* **** ********* / ******, analyzing *** ****** (********* ********* ***** ****, ***** ***** ***** being '********', *** ******** **** ** *** *** ******, *** 'vicious *****' **** ****) *** *** ********* ****** ** *** fast ******* *** ******** ***** **** ******* ** *** ***** / *** ********.

[******: *** ******* ** *******. ******** ******.]

[***************]

Filings ******

**** ** **** **** ** *** **** ********* ********* ******* *****.***/ ********, ***** ** *** **, ****.

Key ***********

********* *********.***'* $*** ******* *********** ** *** ******** ********** **** ** ********:

*****.***’* ******** ******** ** ******** ***** **** *****.*** *** ******** Remote ******** ********

*** ******, ******* *********, ***** ** ******* ****** **** ** Alarm.com ******* *** *********:

*** ******** *** *********** ****** ***** ** ****** ****** *** Remote ******** ** ******** *******

*********** ** *****.*** ***** ** ****, ******* *********:

*****.*** ***** ** **** ** ****** **** ***** ***** ************* of ******** ******** *** *****-**** ******* ************ *********** **** *****.***.

*******, ****** / ** ******** ***** ** * *******, **** Honeywell:

*****.*** *** ******** *** ***** ************ ******** ************ ** ****** potential ***********.

Smart **** / ****** ********

** ******* ** ***** **** ************** ********* *******, ** ***** ~7 ******* *** ***** **** / ****** ******** ********* **** Honeywell, *****.*** ** ********, ********* ** *********. *.* ******* ** those * ******* ***** ***** *** ********* ******* * ******** dealer, **** *********.

****** ***** *** ***** **** / ****** ******* ******** ** estimated ** ********* **:

  • *****.*** **% / *.** ******* (**** *****.*** ******** *.* ******* at *** *** ** ****, ****** ***** ****** ** ******* higher ***)
  • ******** **% / *.** ******* (******** **** *****.*** **** ******* the **% '********' ********)
  • ********* **% / *.** ******* (*.*.,***** *******)
  • ****** **% / *.** *******

Open ***** *** *********

** *** *********, ********* ****** **** *** * ****** ********:

*********, ********* **** ****** ************. ************, * ******** *** **** use ********* ****** ******** ******** ** ** **** **** * Honeywell ***** ******.

*******, ********* **** ** *** ***** ** **** **:

********* *** ******** *** *********** ** ****** ** ** **** structure *** ********* ******** ***** ** ** **... ** *** made ***** ** **** *** ****** ** ***** ***** ******** hardware ************* ** **** ** ** ** **** ********* *** option ** *** ********* ******** ******** **** ***** ***** ****** Services *** **** *****.

**** ********* **** ******* ***** ****** *****, **** **** ** damaged *******:

*** ****** ***** ***** *****.***/******** ** ****** *********’* ******* ** establish ** ******** **************** **** ***** ***** ******** *** ****** manufacturers. **** **** **** ****** *********’* ******* ** **** *** platform ** ***** ***** ******** ******** *** ********* **** *********’* ability ** ******* *** ******** ** ***** *************’ *****-**** *******.

'Crippled' ********* **** ***

********* ***** ***** ********, ************ **** ***:

*** ****** ***** ***** *****.***/******** ** ****** ********* ** *********** Honeywell’s ********** ************ **** * **** ********* ********, ***, *** largest *********** ******** ****** ****** *** **** ** ********* ******** of ******** ****** ********. **** ***** ******* ********* ** * Remote ******** **********.

************, ********* ***** **** ******** ***** ** ***:

*** ********* ****** ******** **** ******** *** ******** (***** *******) from ******** ******* ********* *********.

** ********* ******** **** *****.*** **** ***** ********* ******** *** when *** ***** ** *****.***'* ********. ** **********, *** ******* beneficiary ********:

*****.*** *** * ********* ******** ** ***** ****** ************ ******. The ****** ******* **** **** ** ********* ** ****** *** hardware ***** **** **** ********* *** ****** ******.

*** ******* ***** ** ********* ******** ** *********, **** *********:

*** ******** *** * *********** ******* ** *********’* ******** *****. Termination ** ********** ** *** ********** ************ ***** ****** ** drastic ********* ** *********’* ********* **** *** ******* ******.

Vicious *****

********* ********* **** ****:

** ********* ***** ******* *** ***** ******, ** **** ** forced ** ******** ********** ** *** ********. * ******* ***** unfolds: *** **** ***** ********* *****, *** **** ********** *** product *******, ******* ** **** *** ********** *****.

Litigation ** *********

***** **** ** *********'* **** **** ********* *** **** **** stunned **** *********'* ************ ****. ** ******, ** ***** ** anti-trust *********, *** ************ **** ** ** ** ***** ** possible ** **** *** ****. ** ** *** ***** ** Honeywell ***** ******** *** ****** ** ******** **** **** ** much ** ** ** ****** *** **** *** *** *********.

Vote / ****

Lawsuit *******

*** ******* *** ******* ** ***** ****. ***** ******* **** not *********, ** ****** **** *****.*** ******** **** *********** / agreement ** **** ** *** ******** *********** ****** ********* ******** to (*.*., ******** **** ***, ***.). *****.*** ********** ***** **** logistically (******** *** ***** ** ** ******* ****) *** ********** (not ******** ******** ******** ******* * **** ****** ******* ******* they **** '*****' ** '*****') **** ******** *** ****.

Comments (19)

Undisclosed #1

02/24/17 02:27pm

* ***** **** ** *********'* ***** ***** ** ********** ** the **** **** **** **** ****** *** *** ** *** former ****** ****** **** ***** **** **** ** **** **** earlier ** **** **** ******. **** **** ********* **** ******* future ******** ** **** ** ******* ***** ********** ***** ** Honeywell's ********** **** *** *** ******* ** ****** **** **** they **** *** **** **** ******** ** ******* ******* *********...

Thumbnail last saturday

Mark Jones

02/24/17 02:30pm

*********** ****, ***** ***. * ***** **** **** **** ********* has *** * **** ******* ************ **** *** *** ***** and ***** *** *****, *** ***** *********** **********, ** *** ever ***** * **** **** ** **** * **** **. The ****** *** ******* ***** ** *** *********/*** ***********. ****-***** exist ** ******* **** *********** *** *** ********** ** *** consumer, *** * ********** ************. ** * **** ***** *********, I ***** ***** **** ***** ********** ** *** ****** ** their ********. * **** ***'* *** *** ** ***** *** consumer. * ***** ** ** *** ***.

Jeremy Ellis

02/24/17 03:22pm

********* *** ***** ** **** ** ***** ********?!? **** * fucking ***/****. ***** ** *** ***** **** ******** ** *** users ***** *****...* ***'* ****...*** *** ******* **** ********** ********? Or ***** ** *** *** **** **** ** *** *** a ****** **** ******** *******, ***** ** ** **** ** a ****** ***** ** *** ** *** **** ******* ********? A ***** **** ** *** **. ***. **** ** ** thermostats *** *! **'* *** *** **** ****!

Undisclosed Integrator #2

02/24/17 03:56pm

***** ********* *** ***** *** * ****** ***** ** ******** to ******* ****** **** ** ****** *** ****** **-* ****'* at ***** ** *** ********** ****. * ***** **** *** same ** ********* ***** ** *** **** *****. ***** ********* given *** ****** ***** *****.

Thumbnail newheadshot

Sean Nelson

Nelly Security | 02/24/17 04:26pm

**** * **** ******* **** ** *********. ************ ********. **** just **** ** ***** **** ***** ******** ***** ** ********** to *****.***. **** **** ***** ****, **** *** ** **** to *** *** ******* *** ******** *******.

**** *** *****.***, **** ***** * ******* ****** ** *** cylinders!

Undisclosed Integrator #2

02/24/17 04:39pm

* ******** ** *** ******* **** ** ******. *****.*** *** had *** ****** ** ****** **** *** ****** ******* ****** to **** **** ****** ******* *** ****** ************* ******* ***. They **** ****** ***** *** *** ***** **** ** ** the *******/******** *********** ***** ********* **** * ******* **** *********. It's ****** **** ** **** **** ** ******* *** ******* and ****** ************* *****. **** ******** ***** ********* **** ******** have **** ** *** ******** ** **** ****** ***** ***** AT&T's **** ***** *******. **** ** *** ****** *** ** a ***** **** ******* ************* ** *** ****** **** ** being *********** ** *** *** ********. **'* ****** **** ** criticize *** ***** ********* ** **** ******** ** *** ****** fast ******, *** **'* *** **** *** *** ** **** to *** **** **** *** ******* **** **** ********* ******* you **** **** *** ** *** ****** *** ***** ** be ******** ****/** ************* **** ** *********** ********. **'* ****** difficult ** ***** ** **** ** ****** ***** *** ******. There's * ****** ***** ****'* **** **** *** **** *** companies ** *** ********.

**** ** ***** ***** ********* ***** **** **** * ****** of ********* **** **** ****** ** ******* ****** ***** **** to ****** ********** ** * ****** ******* ******* ****** ********. Alarm.com *** ****** *** *** *** ******** *** **** **** of *** ****** *** * ***** ****** ** ***** ** try ** ******* *** **** ********. ******* ** **** **** of *** ****** ***'* ** ****** *** ***** ** ** a *** ******* ** * ******** ****. **'* *** **** problem ********* ** ******* ****. ***'* *** ****** **** ** 2013 *** ***** **** $**** * ***** ** ************ **** for ****-**.

Thumbnail newheadshot

Sean Nelson

Nelly Security | In reply to Undisclosed Integrator #2 | 02/24/17 05:48pm

"******* ****** ** **** **** ****** *******?" *** ***** ** if **** **** * ******. ********* *** **** ** *********** successful ******** *** ***** * **** ****, **** **** *** money *** ********* ** *** ** *&* **** **** ******* primarily ** ******* **** ********** *** ******* ***** ** *** game *** **** ** ***** **** ******, **** ****** ***** put ****** ******** ** **** ** ****** **** *** ***** route ********* *** *** ****** ********** *** *** ***. **** is ******* *********** *** "******* *** *****". *** ********* ** on ***** ***** *** *** **** ***** **** **** ** do ** **** ** ****-***** **** ***** ** ** *******, makes **** **** **** **** *** ********.

John Honovich

IPVM | In reply to Sean Nelson | 02/24/17 06:16pm

********* ** ** ***** ***** *** *** **** ***** **** know ** ** ** **** ** ****-***** **** ***** ** my *******, ***** **** **** **** **** *** ********.

* ***** ** *** **** *** ********* ** *** *******, it ***** ********* **** **** / *********.

*******, **** ****** *** **** ***** ** *** *** ******** - *** ****** ********* **** ***** *****.***. *** ********* *** a ****** *** ~*** *****.***'*.

*** ** ********* ** **** ********* ***** **** ******. *** example, ***** ****** ** **** *** ******* ***** *** ********* was *****, ******* ******* **** ***** ** *** **** ****** them ***. * ***'* **** *** **** ***** *** ** would **** **** ***** *** * ********* ****** ** ** so. ****, ********* *** ****, ********** * ****** *******, ******** from **** ** * ******* ***** ** *** ****** * chilling ****** ** *** ******* ******* (*.*., "** **, ********* is ***** ***** *****.*** ***** ** ****** **** ** **** with ****, ***.").

Thumbnail newheadshot

Sean Nelson

Nelly Security | In reply to John Honovich | 02/24/17 06:57pm

* *****, ***** **** *****, *** * ***** *** ******** exact ********. ** ******** "** ***, ********* ** ***** *****.***, they **** ** * ****** *** ********* ** ****** ********** feather, * ***** ***** **** ***"

**** * ***** *********, * ***** ** *** ********* *** did ** **** ***** ****** **** *** ** **** ***** and *** ******* ** ***** ** *** ***** ****** ********** and ** *** **** **** *** ***** ** ********, ** was ******* *** ****. ******* *** *** **** ******* *** thats ** *****.

Undisclosed #4

In reply to Sean Nelson | 02/24/17 06:48pm

* ***** ****, *** ******* **** **** ******** ** **** you ****** **** ********* *** ******** *** **** ** ***** taking ******* *** ** *** ****** ******* ***** ********* ** get ***** ********** **** ****** **** ******* *** ********** **** in...that ** *** **** ****** **** ...***'** **** *** ***** practical! :)

Thumbnail best shot

John Williams

In reply to Undisclosed Integrator #2 | 03/15/17 04:38pm

* **** **** ********** **** ******** ******** *** ***********. * learned * *** **** ** **** * **** ***** **** me.

****'* *****, ***** ****'* *** **** *** **** *** *********!

Undisclosed #3

02/24/17 06:31pm

**** *** ********* ******* ***?

Undisclosed #1

In reply to Undisclosed #3 | 02/24/17 06:58pm

****. ** **** **** *** ************, *** ******* *********** *******. Execs **** ***** ********* **** ****** ** ** ****** *** the ********** **** ***** *******.

Undisclosed #4

In reply to Undisclosed #3 | 02/24/17 06:58pm

*** **** **** **** ******** *******...****

Undisclosed Manufacturer #5

02/24/17 11:44pm

** *** ******** *** *** ******* ********* *** ******** ** win ** **** **** **** ***** ** ****** *****.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #5 | 02/25/17 12:50am

** *** ******** *** *** ******* ********* *** ******** ** win ** **** **** **** ***** ** ****** *****.

** **** * *** ** ****-********* *********?

Undisclosed Manufacturer #5

In reply to John Honovich | 02/25/17 12:57am

******* *** ** *******, **** ** ***********. **** *** ***** days ** ******** ******* ******* ***** ** ******* ******* *** owning ******** ************ ** *** **** ********, ***** ****** ** alarm ******* *** * ***** ******.....**'* **** *** *** **** to *** ****.

Undisclosed Distributor #6

02/26/17 11:15am

****** **** ********* ****** ** ***** *** ****??

John Honovich

IPVM | 03/14/17 06:53pm

******: *** ******* *** *******. ***** ******* **** *** *********, we ****** **** *****.*** ******** **** *********** / ********* ** some ** *** ******** *********** ****** ********* ******** ** (*.*., blocking **** ***, ***.). *****.*** ********** ***** **** ************ (******** the ***** ** ** ******* ****) *** ********** (*** ******** millions ******** ******* * **** ****** ******* ******* **** **** 'right' ** '*****') **** ******** *** ****.

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