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IBM Makes Concessions to Appease Smaller Competitors in Europe

IBM has proposed some concessions to competitors to the European Commission as regulators probes IBM’s dominance in the mainframe market.

According to CBS (opens in new tab), the European Commission is probing IBM over complaints made by some of its smaller rivals, which allege the company is using its dominant position to make it difficult for other firms to provide maintenance services for its mainframe offerings.

As per the new concessions, IBM will make it easier for competitors to obtain spare parts and technical information related to its mainframe systems over the next 5 years.

IBM, eager to resolve the probe, made the concessions despite that fact that it did not agree with the European Commission’s early assessment that the company may have imposed unfair conditions on third-party mainframe maintenance service providers.

The concessions “aim to resolve concerns that IBM may have imposed unreasonable conditions for supplying competing mainframe maintenance service providers with such inputs, in breach of EU antitrust rules prohibiting the abuse of a dominant market position in Europe,” the European Commission said.

The EC was involved in another investigation of IBM which was dropped after the three companies which brought the case against IBM withdrew their complaints.