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Security firm told to abstain from monopoly abuses

Check Point has agreed to provide a formal undertaking to the European Commission regarding its distribution practices, following a complaint from Stonesoft that it was attempting to exclude it from the market by abuse of monopoly.

The undertaking, says Stonesoft, has been used very seldom by the European Commission. "So far only two prior cases are recorded in the field of information technology; IBM in 1984, and Microsoft in 1994," said the company's publicity firm today.

The original complaint against Israeli security software company Check Point Software Technologies Ltd - that it was attempting to exclude Stonesoft from the market - was lodged nearly a year ago, in June 2001.

"Following this complaint, the European Commission commenced extensive investigations into Check Point's position and behaviour in the firewall and VPN market," says Stonesoft.

The Commission stated that it was concerned that Check Point had told some of its distributors and resellers that if they attempted to sell Stonesoft's competing firewall/VPN product, they would no longer be supplied with Check Point's own product.

Given Check Point's market presence, the Commission was concerned that this was having "a negative foreclosure effect in the market for firewall/VPN software in violation of European Union competition rules."

The terms of the formal undertaking are as follows:

- Check Point confirms that it will not place undue or unacceptable pressure upon its distributors and resellers regarding their independent decision whether or not to sell competing products;

- in this respect, Check Point will confirm to its distributors and resellers their right independently to choose to handle products of other manufacturers which directly or indirectly compete with Check Point's own products. Therefore, Check Point will inform all its distributors and resellers by letter that it will not condition the supply of its products, or the terms and conditions of supply of its products, on whether or not its distributors and resellers stock, market and sell competing products. A copy of this letter will be provided to Stonesoft.

- Check Point will also ensure that its sales and other relevant personnel are informed about the EU competition rules and that they understand the requirement to comply with those laws in their business dealings.

" We are pleased with the outcome of the extensive investigations made and the strong and active role the European Commission took in achieving this settlement. From our point of view this was the fastest and the most effective way to ensure free and healthy competition in the market. For our partners and customers this undertaking offers now a possibility to freely select new innovative products", says Stonesoft CEO Esa Korvenmaa.

For more information about Stonesoft and its products and services, please visit www.stonesoft.com.