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ARTICLE · 11 AUGUST 2010

Commission Opens Investigations Against IBM For Suspected Abuses

SJ Berwin LLP
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The Commission has started formal antitrust investigations against IBM in two separate cases of alleged abuse of a dominant market position. The cases are related to IBM's conduct in relation to mainframe computers.

European UnionAntitrust/Competition Law
SJ Berwin'S EU & Competition Team
SJ Berwin'S EU & Competition Team

The Commission has started formal antitrust investigations against IBM in two separate cases of alleged abuse of a dominant market position.  The cases are related to IBM's conduct in relation to mainframe computers.

The first case follows complaints by emulator software vendors T3 and Turbo Hercules, alleging that IBM has engaged in illegal tying of its mainframe hardware products to its mainframe operating system. The complaints contend that the tying shuts out providers of emulation technology which could enable users to run applications on non-IBM hardware.

The second investigation was initiated by the Commission due to its concerns that IBM may have engaged in anti-competitive practices with a view to foreclosing the market for mainframe maintenance services.  This practice may have kept potential competitors out of the market, in particular by restricting or delaying access to spare parts for which IBM is the only source. 

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