This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

IBM Faces Antitrust Investigation

ARMONK, N.Y. ( TheStreet) -- IBM (IBM - Get Report) is being investigated by the U.S. Justice Department for allegations that it abused its dominance of the mainframe business to squeeze rivals, says Computer and Communications Industry Association Chairman Ed Black.

CCIA, a non-profit trade group, had urged the Justice Department to open the probe, reports Reuters.

CCIA accused IBM of withdrawing licenses for its operating systems from customers who use non-IBM hardware, retaliating against business partners deemed disloyal, and bundling its mainframe operating systems with hardware. The Reuters report also said CCIA alleges that IBM refused to license its mainframe operating systems to users of "Hercules" open-source software for installation on machines other than IBM mainframes.

The Justice Department has begun a CID investigation process, equivalent to a subpoena, and its scope is quite broad with antitrust being one of the primarily focal points, Black said, according to Reuters.

The news comes after software developer T3 Technologies had filed an antitrust suit against IBM in Manhattan federal district court. The judge threw out the suit on Sept. 30.

In a statement, IBM highlighted the dismissal of the suit, but Black pointed out the Obama administration's pledge to deal with antitrust seriously.

The probe by the Justice Department is similar to others it has opened into dominant firms. The head of the department's antitrust division, Christine Varney, said in May she planned to take a more aggressive approach with firms that use their market power to crush competition, Reuters notes.

This article was written by a staff member of TheStreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
IBM $160.40 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs