EU Launch Antitrust Probe of IBM
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ServerWatch reports that the European Commission is on the prowl for another American computer firm, and this time it's got the biggest fish of them all on the line, IBM. It's after IBM for, of all things, alleged anticompetitive behavior in the mainframe market. The same mainframe market everyone keeps saying is dead? Perhaps it's not so dead after all.
IBM is facing regulatory scrutiny from the European Commission, which launched two separate antitrust investigations into Big Blue's mainframe business.
The scrutiny comes in spite of the market's relative size. Citing IDC numbers, IBM (NYSE: IBM) noted that mainframes account for only 0.02 percent of total server sales. However, mainframes also account for close to 10 percent of server revenue.