IBM faces anti-competition investigation by the EC

IBM is facing an investigation by European competition regulators following allegations by smaller rivals in the mainframe market, despite buying one of the original complainants Platform Solutions Inc (PSI) this week. Silicon Valley start-up PSI pursued an anti-trust litigation in the US and follo

IBM is facing an investigation by European competition regulators following allegations by smaller rivals in the mainframe market, despite buying one of the original complainants Platform Solutions Inc (PSI) this week.

Silicon Valley start-up PSI pursued an anti-trust litigation in the US and following attempts to enter the big iron market in Europe made complaints to EC competition authorities. The case was dropped by PSI on Wednesday, the same day it was acquired by IBM.

But sources in Brussels told the newspaper the EC would continue to look into the issues that PSI had notified them of. "We are continuing to look at competition in that market," said an official.

The deal with PSI, a small firm that manufactures low cost mainframes which can run Big Blue's operating system complained to competition regulators in the US because IBM would not license its OS to hardware competitors.

An IBM spokesman said it had acquired PSI for its lab skills and technology portfolio but denied the acquisition was to prevent the company from further pursuing litigation.

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