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

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

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 ****-**.

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 ****, ***.").

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! :)

John Williams

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

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

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

Undisclosed #3

02/24/17 06:31pm

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