The U.S. Justice Department is investigating whether IBM is monopolizing the mainframe computer market.
Did you know? Some analysts think mainframe computers still generate a quarter of IBM’s $100+ billion in annual sales, according to the Wall Street Journal.
WSJ: Members of the Computer & Communications Industry Association—a group with many IBM rivals among its members—recently received civil investigative demands from the Justice Department seeking information related to IBM, said the group’s chief executive, Edward Black .
The requests, a special kind of subpoena used in antitrust investigations, followed a complaint by the group to the Justice Department accusing IBM of harming businesses by abusing its dominance of the market for mainframes. IBM declined to comment on the CCIA’s allegations.
The Armonk, N.Y., giant has long held a near-monopoly position in mainframes, which are large computers that can cost $1 million or more and are designed to run accounting software anddatabases. For decades, the company operated under terms of a 1956 consent decree with the government that required it to licence mainframe technology to competitors.