Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Europe accepts IBM antitrust concession; Drops investigation

By | December 14, 2011, 4:29am PST

Summary: European antitrust chiefs will drop an investigation into IBM, after concessions were made to steer the Commission away from a ruling.

European regulators are ending an antitrust investigation into IBM, after concessions made by the computing giant were accepted.

The European Commission released a statement this morning, stating that it was “pleased” it could find a “swift solution with IBM” regarding its concerns over anti-competitive behaviour.

While the European regulator was keen to stress that it had previously thought IBM was abusing its dominant position, the company put forward a series of commitments it would abide by, thus ending any further action or a formal ruling.

IBM has not yet been proven to have broken European law. But the Commission made it clear that should the commitments that ended this investigation be broken, then it would be found infringing the law “without having to prove a violation of competition rules”.

Companies that flout European antitrust and anti-competition laws can face fines up to 10 percent of their global annual turnover.

In mid-2010, the European Commission began investigating whether IBM was abusing its dominance of the mainframe maintenance markets. Allegations were made that the computing giant “hindered the access” of maintenance providers to critical spare parts, putting these smaller firms at a disadvantage.

In September, the Commission found that IBM was willing to comply with the regulator’s demands.

Today’s result however shows that IBM’s commitments to change its polices and open up to third-party vendors are now legally binding, resulting in the end of the investigation.

This is the second case that the Commission has ended this year where IBM has been involved.

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Zack Whittaker, a criminologist who studied at the University of Kent, Canterbury, is a journalist, writer and broadcaster.

Disclosure

Zack Whittaker

I worked briefly with Microsoft UK in 2006 but no longer have any connection with the company. Regardless, I remain impartial and unbiased in my views.

I don't hold any stock or shares, investments or industrial secrets in any company, but have signed confidentiality agreements with a number of UK and U.S. organisations, whose names I am not at liberty to disclose.

I was involved with Kent Union, the University of Kent's student union, undertaking voluntary, non-salaried, elected positions between early 2009 and mid-2010.

No other company, body, government department, non-governmental organisation or third sector organisation employs me or pays me a salary in any capacity whatsoever.

As a freelance journalist, whenever expenses are given and taken by a company that is not CBS Interactive, these will be disclosed in each relevant post to ensure transparency.

I currently work with a UK law enforcement unit, but this is an entirely separate position which bears no connection to other work.

(Updated: 23rd October 2011)

Biography

Zack Whittaker

Zack Whittaker, criminologist who studied at the University of Kent, UK, is a journalist, writer and broadcaster.

After studying criminology at university, though still in his early-20's, he has already had a series unconventional work and voluntary positions. He has worked with researchers studying neurological illnesses like Tourette's syndrome (which he suffers from), has given lectures on the nature of disabilities in the public community, and occasionally ends up speaking on television and radio discussing the events of the day.

He first had academic work published at the age of 22, then still an undergraduate, and has been cited by a wide range of publications: from CNN, the Huffington Post, AllThingsDigital, The Atlantic Wire and CBS News.

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