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July 28, 2010

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EU investigates IBM

THE European Union opened two antitrust investigations against IBM Corp on Monday, accusing the American technology giant of abusing its dominant position in the mainframe computer market.

One investigation stems from complaints by emulator software vendors T3 and Turbo Hercules, which accuse IBM of tying the sale of mainframe hardware to its mainframe operating system, the European Commission said.

The other, begun at the EU executive's own initiative, accuses IBM of "discriminatory behavior toward competing suppliers of mainframe maintenance services."

The opening of EU antitrust investigations does not mean the European Commission has proof of any wrongdoing, only that it sees cause for a deeper look into corporate behavior.

The European Commission said T3 and Turbo Hercules complain that IBM, by tying its hardware and operating systems together, "shuts out providers of emulation technology which could enable the users to run critical applications on non-IBM hardware."

Its own complaint says IBM "may have engaged in anti-competitive practices."

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