European Union IBM competition cases
| Industry | Information technology |
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On July 26, 2010, the European Commission launched two antitrust probes targeting International Business Machines (IBM) over accusations of exploiting its dominant position within the mainframe sector. The initial investigation arose from grievances filed by mainframe emulator companies T3 Technologies, TurboHercules, and Neon Enterprise Software, centering on claims that IBM improperly linked its mainframe hardware with its operating system. This practice was alleged to limit customers' ability to operate essential applications on servers not manufactured by IBM. The second inquiry, initiated independently by the Commission, scrutinized IBM for purported discriminatory conduct against rival providers of mainframe maintenance services.
In response, IBM dismissed the charges as being driven by "satellite proxies" aligned with competitor Microsoft, which had previously been subject to numerous EU antitrust proceedings. IBM also emphasized its broad portfolio of patents in both the U.S. and Europe safeguarding its mainframe hardware innovations. The company contended that competitors neither requested nor compensated for licenses and maintained that it should not be obligated to enable patent infringements.
Resolution
After suffering setbacks in related U.S. litigation against IBM, T3 and Neon withdrew their complaints before the European Commission in August 2011, with TurboHercules following their lead shortly thereafter. On September 20, 2011, the European Commission concluded its review of the alleged operating system and hardware tying without pursuing further action. Separately, IBM consented to provide mainframe spare parts and specific technical details to maintenance service providers for a duration of five years. This arrangement received provisional endorsement from the Commission and was granted final approval in December 2011.