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IBM the Subject of DOJ Antitrust Inquiry

IBM is reportedly facing an antitrust inquiry from the U.S. Department of Justice. Recent actions the company has taken in the mainframe computer market have caught the DOJ’s attention, according to the trade group that filed the complaint, the Computer and Communications Industry Association (CCIA).

The DOJ has issued formal requests for information related to a complaint that was filed against IBM in September. CCIA’s problem with IBM is related to the company’s refusal to issue licenses for IBM’s mainframe OS to its competitors. In some cases, IBM has rescinded the OS license from customers when they attempt to switch from IBM mainframe hardware to a competitor’s. The DOJ had a long-standing antitrust consent decree with IBM, but abandoned it in 2001.

Several midsized companies have intentions to compete with IBM in the mainframe market, particularly in software and services for mainframes, but IBM’s actions have supported it maintaining a monopoly. In adddition, mainframe customers looking to find cheaper alternatives have been unable to.

IBM claims that it intends to cooperate with any inquires from the DOJ. Courtesy of networkworld.com


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