Skip to main content

IBM Investigated by EU Regulator Over Mainframe Computer Market

Posted in

International Business Machines Corp., the world’s biggest provider of computer services, is being investigated by the European Union for allegedly abusing its dominant position in the market for mainframe computers.

The probe follows complaints by a pair of software makers and involves two separate investigations, the European Commission said in a statement. IBM said that the probe was the result of a campaign by “satellite proxies” of competitors led by Microsoft Corp.

TurboHercules said in March that it filed an EU complaint after it determined that IBM was trying to extend a “monopoly” on mainframe computers for open-source solutions. Open source means that the software’s underlying code is available for free.

The Computer & Communications Industry Association said in a report sent to the U.S. Justice Department in September that IBM is stifling competition by withholding licenses to run its operating system on rival hardware.

T3, a company that builds mainframe computers and is mentioned in the CCIA’s report, made a similar complaint against IBM to the commission. Similar antitrust claims the company made against IBM in a New York court were dismissed in September.


Source : Bloomberg.com