IBM faces two competition inquiries

EU regulators have begun two investigations into IBM, the world's largest computer services firm, following accusations the American company has been abusing its dominant position in the market for mainframe computers. The European market for mainframe computers and software was worth €3bn (£2.5bn) last year. If the investigation finds that IBM abused its position in the market it could face a multimillion-euro fine. The investigations, one of which was sparked by a series of complaints over the past 18 months, come after the EU slapped a record €1.1bn fine on chip maker Intel last year and completed its long running investigation into Microsoft. Earlier this year the commission began a preliminary anti-monopoly investigation into Google, examining its power in the online search and digital advertising markets.

In a statement, the commission said its first investigation into IBM follows complaints by software vendors T3 and Turbo Hercules, and focuses on IBM's alleged tying of mainframe hardware to its mainframe operating system.

The second is an investigation begun on the commission's own initiative of IBM's alleged discriminatory behaviour towards competing suppliers of mainframe maintenance services.

You can read the full article here on the Guardian website.

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