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IBM

EU launches IBM antitrust investigations

Computer giant under spotlight for possible competition infringements.

COMPUTER GIANT IBM is being investigated by the EU for possibly abusing its dominant market position. The Commission has initiated two formal antitrust proceedings against the company.

Both cases relate to IBM’s conduct in the mainframe computer market.

The Commission said today: “IBM is alleged to have engaged in illegal tying of its mainframe hardware products to its dominant mainframe operating system.

“The complaints contend that the tying shuts out providers of emulation technology which could enable the users to run critical applications on non-IBM hardware.”

It also said that it had concerns that IBM may have engaged in “anti-competitive practices” concerning maintenance service in the sector.

In March, Roger Bowler from TurboHercules lodged an antitrust complaint with the EU against IBM. TurboHercules is an open source mainframe emulator. Bowler complained about IBM’s efforts to prevent its mainframe users from deploying the software of their choice.

Last year, around €3 billion was spent in the EU on new mainframe hardware and operating systems.