In response to the planned acquisition of two divisions of Icontrol Networks by Alarm.com, Honeywell International has filed an antitrust suit claiming the combined entity of two of its competitors would result in 70% share of the market for software that allows remote operation of connected products and devices, according to a report by the New Jersey Law Journal.
Honeywell seeks to stop the $140 million acquisition citing that courts have held that a 65% market share is sufficient to establish a prima facie case of market power, according to the suit filed in federal court in Newark, the report stated.
According to the report, Honeywell said the deal would permit Alarm.com to insist third-party manufacturers of security hardware and smart home devices use its platform exclusively, and would hamper the company’s ability to connect its software platform to other manufacturers’ smart home devices.
In addition, Honeywell said the deal would undermine the company’s relationship with ADT having already expended time and resources to make its platform compatible with the independent security system dealer, the report stated. ADT has announced that it will switch from Honeywell to Alarm.com remote services software if the deal goes through, according to the report.