IBM becomes latest IT giant to be investigated by European Commission over possible competition law issues

The European Commission is investigating whether IBM has abused its dominant position contrary to Article 102 of the Treaty of the Functioning of the European Union (formerly Article 82 of the EC Treaty). It is looking at two possible breaches. One relates to whether it tied its mainframe hardware products to its dominant mainframe operating system. This came as a result of a complaint by T3 and Turbo Hercules, which thought it was not having a level-playing field in its sale of software that competed with IBM’s mainframe operating system software. In a separate competition law investigation instigated by the Commission itself, it is also looking at whether IBM used unfair means to keep competitors out of the mainframe maintenance services market. IBM has vowed to co-operate with the Commission’s investigations but protested that it had done nothing wrong.

The action comes following the European Commission’s other high-profile competition law battles with major IT and Internet players such as Microsoft, Google, Intel and DRAM chip suppliers.