Update - Tuesday, March 30, 2021:
The Court has decided that it needs additional information before coming to a determination on the merits. This means that the legal process will continue.
Since April 2020, as part of the RingCentral MVP Message Video Phone (MVP) solution, we have been providing customers with a choice between our own video capability, RingCentral Video and RingCentral Meetings, powered by Zoom. We have led with RingCentral Video, and we are very happy with the customer adoption and momentum of RingCentral Video with most of our new customers choosing this option.
We believe that our MVP platform provides our customers with the best communications solution and the market has clearly noticed the rapid customer adoption of our video solution. While nearly all existing customers are not affected by the court’s decision, we will continue with the legal case as we believe in giving customers choices. We have faith in the judicial process and are confident that we will prevail.
Update - Wednesday, March 17, 2021:
We are pleased by the Court’s decision granting RingCentral’s request for a Temporary Restraining Order against Zoom. This affirms our right to continue selling RingCentral Meetings powered by Zoom. While the majority of our new customers are choosing RingCentral Video, we believe in giving customers choices. We will continue our laser-focused commitment to deliver an unmatched suite of products and services that will give people the freedom to work from anywhere.
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.
We believe in fair competition, putting the customer first, investing in innovation and letting the market decide. Zoom’s actions show that it does not. We will remain focused on what our customers need, and we want our customers to know that nothing has changed in our agreements with them.
Customers are our North Star, and they guide us on our journey to deliver the freedom to work from anywhere. Nothing, including this lawsuit, can distract us from our commitment to our customers.