European Commission to investigate conduct in server market

IBM in EU antitrust probe

The EU has announced that it is launching an investigation in to allegations that IBM has used its influence to “eliminate competition and block outside sources of innovation from the market.”

Over the last few months, a range of companies and organisations have been providing the Commission with evidence of IBM’s misconduct. The probe is thought to be running parallel to a similar investigation being conducted by the US Department of Justice.

“Mainframe users on both sides of the Atlantic, and around the world, cannot easily migrate off of the mainframe to more cost-effective platforms,” said the president and CEO of the Computer and Communications Industry Association.

“Thus they have been forced to pay demonstrably higher prices and have had less choice on account of IBM’s efforts to eliminate competition and block outside sources of innovation from the market. Given current economic conditions, this is hardly a time for businesses, small or large, to being paying billions of dollars extra for the cost of essential inputs.”

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