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September 21, 2011

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IBM tries to head off EU probe

US computer maker IBM yesterday offered to make it easier for competitors to provide maintenance services for its mainframe computers, a concession designed to get European regulators to shut down an antitrust investigation.

The European Commission has opened two investigations into whether IBM abused its dominant position in the mainframe market last year.

One inquiry focuses on the com-pany's profitable maintenance services. A second, which the commission closed yesterday, examined whether IBM was unfairly tying its mainframe hardware to its operating system.

Mainframes are powerful computers used mostly by big companies and governments.

Competition commissioner Joaquin Almunia said: "I commend IBM's readiness to address our concerns."

The commission said it told IBM a preliminary assessment showed it "may have imposed unreasonable conditions for supplying competing mainframe maintenance service providers."

IBM, according to a notice published in the EU's official journal, said it was offering the concessions even though it did not agree with the commission's initial assessment of a potential abuse of dominance.

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