EC orders IBM to behave in mainframe business

EUROPEAN REGULATORS have told IBM that it must not abuse its position as mainframe market leader and have given it a set of rules to live by.

The European Commission (EC) wants to satisfy concerns that the firm will not abuse its position as market leader, and is making it do things like commit to giving its spare parts and technical information to independent mainframe firms, under fair terms.

The Commission opened its investigation into the firm in July 2010, at which time the concerns about third parties entering and maintaining a presence in the market came into its focus.

It had concerns that IBM might have imposed unreasonable conditions for supplying its competitors in breach of those EU antitrust rules that prohibit the abuse of a dominant market position.

Now the EC is happy that IBM is not doing this, and has set in place rules that mean that it will not do it again.

"I am pleased that we could find a swift solution with IBM to our competition concerns. Timely interventions are crucial in fast moving technology markets," said Joaquín Almunia, the EC Competition Commissioner.

If IBM does decide to breach its commitments the Commission could slap it with a fine of up to ten per cent of its annual turnover, without having to prove any violation of EU competition rules.

"IBM welcomes this final resolution of the inquiry into certain IBM mainframe maintenance practices and is pleased that the Commission's investigation of the IBM mainframe [business] is now concluded," it said in a statement sent to our sister IT news web site V3.co.uk. µ