EU investigates IBM practices
The European Union opened pair antitrust investigations against IBM Corp. on Monday.
The EU accused the U.S. technology monster of abusing its dominant position in the market for mainframe computers.
IBM 3-month chart
One research stems from complaints by emulator software vendors T3 and Turbo Hercules.
They say. IBM has tied sales of hardware together with its operating scheme, shutting out suppliers of competing equipment, which could use emulating software.
Emulating software acts in the same manner with if it is running on an IBM mainframe whereas it in truth. runs on cheaper servers.
IBM said in a statement that "there is no merit to the claims."
The other accusation, launched adhering the EU executive's own initiative, is that IBM discriminates off competing providers of mainframe maintenance services by "restricting or delaying addition to spare parts for which IBM is the only source."
Mainframes are effective computers used by large corporations and governments to store and course critical business information.
It is estimated the vast majority of in~d data worldwide resides on mainframes.
The European Commission estimated worldwide sales of mainframe computers and operating systems in 2009 at the equipollent of $11.4 billion. It put sales in Europe at near $4 billion that year.
IBM shares closed at $128.41 US forward the New York Stock Exchange, up three cents.
With files from The Associated Press