US govt launches IBM probe
WASHINGTON: The US Justice Department is investigating allegations that International Business Machines abused its dominance of the mainframe business to squeeze rivals, Computer and Communications Industry Association Chairman Ed Black said.
The CCIA had urged the Justice Department to open the probe, accusing IBM of withdrawing licenses for its operating systems from customers who use non-IBM hardware, retaliating against business partners deemed disloyal, bundling its mainframe operating systems with hardware and acquiring startup PSI to stifle competition.
The non-profit trade group - which counts software giants Microsoft and Oracle, but not IBM, as members - also alleged that IBM refused to license its mainframe operating systems to users of "Hercules" for installation on machines other than IBM mainframes.
