Is Sun killing secondary market in Europe?

Filed in archive Business on May 2, 2007

In A complaint filed to the Office of Fair Trading in the UK by the Association of Service and Computer Dealers International or ASCDI states that Sun has infringed competition law of UK and closed the secondary market of Sun products in Europe as it has refused to provide resellers with provenance information with regards to its equipments. They further say that as a result of the policy of the company they have been forced to shift their focus on to other product lines and as a result now they have a large inventory of Sun products which can only be sold off at considerable losses.

As per ASCDI it is the only company which is resisting from revealing the information. The market for products of Sun in EU is worth $1.4 billion and reseller market is worth $533 million but this action of Sun will not only lead to drop in their revenues but other manufacturers may also follow suit driving resellers out of the market. They all want that Sun should disclose the information or they would be robbed of their businesses.

Earlier Sun had taken Amtec which is a UK reseller to court for infringing its trademark for trafficking in Sun system which was sold in Israel but was directed through several European countries to UK and now sun wants that resellers cant sell used equipments which were not manufactured for that particular country and appropriate paperwork would be required in this regard and as a result a number of resellers have been suffering.