Sunday, January 28, 2007

Platform Solutions brings antitrust case against IBM

IBM sued Platform Solutions, and now Platform has returned the favor:

Platform Solutions Inc. (PSI), the mainframe wannabe whose Itanium-based servers can run IBM's z/OS mainframe operating system as well as Windows, Unix and Linux, has sued IBM for antitrust, charging Big Blue with, among other things, tying the sale of z/OS to the sale of its mainframe hardware, a serious antitrust no-no and something IBM is specifically forbidden to do under the lingering terms of its now-dissolved 1956 consent decree with the United States government.

Besides tying and tortuous interference with the potential sale of PSI, the 54-page suit charges IBM with monopolization, attempted monopolization, leveraging a monopoly, maintaining, extending and prolonging a monopoly, denying access to an essential facility, restraining trade, suppressing competition, coercing customers and injuring consumers, as well as exclusionary conduct and unfair or fraudulent business practices that deceive customers and cause "supracompetitively" higher prices that also run into the "hundreds of millions of dollars."

In other words, it throws the book at IBM and charges it with violating Section 1 and Section 2 of the Sherman Antitrust Act, Section 3 of the Clayton Antitrust Act, the California Business and Professions Code and New York General Law.

(from ISSJ, SOA World)


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