On Friday, March 12, 2021, Zoom filed a lawsuit against RingCentral in Federal District Court in San Francisco. The lawsuit alleges that RingCentral has breached a longstanding agreement between RingCentral and Zoom. RingCentral disagrees with Zoom’s reading of the agreement and intends to vigorously defend its position.
Zoom’s action seems to be motivated by fear of RingCentral’s success across two dimensions:
As a consequence, Zoom is attempting to restrict customer choice and to hinder competition. The plain truth is that Zoom cannot offer an integrated MVP experience, and restraining RingCentral from using RingCentral Meetings (RCM) during the contractually agreed time period would limit customer choice. While even Zoom does not contend that our existing customer base is in any way impacted by this dispute, the lawsuit attempts to obstruct RingCentral’s efforts to complete the transition of its customer pipeline to RingCentral Video (RCV) — a transition that is already well underway.