IBM misusing its position? EU launches anti-trust probe

By siliconindia   |   Tuesday, 27 July 2010, 20:10 IST   |    2 Comments
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Bangalore: Suspecting International Business Machines (IBM) abusing its dominant position in the mainframe computer market, European Union competition regulators opens two anti-trust investigations against it. Following complaints by emulator software vendors T3 and TurboHercules against IBM's practices, one of the investigations is focused on the U.S. computer group's alleged tying of mainframe hardware to its mainframe operating system. On the other hand, the second one focuses on alleged discriminatory behaviour towards competing suppliers of mainframe maintenance services. According to the Commission, IBM may have engaged in anti-competitive practices with a view to foreclosing the market for maintenance services. IBM, on its part, has rejected the charges, but has promised to give full cooperation to the investigation. According to the company, IBM's big competitors like Microsoft had inspired the Commission's action. According to T3 and TurboHercules, IBM had been illegally tying its mainframe hardware products to its dominant mainframe operating system, said the Commission. TurboHercules welcomes the probe, saying that customers should be allowed to run their mainframe applications on the hardware of their choice.