On July 26, 2010, the European Commission announced [1] two separate antitrust investigations into International Business Machines (IBM). Both cases were related to alleged abuse of IBM's dominant position in the mainframe market. The first case followed complaints by mainframe emulator vendors T3 Technologies and TurboHercules, later joined by Neon Enterprise Software, and focused on the alleged tying of IBM's mainframe hardware to its mainframe operating system, potentially precluding customers from the execution of mission critical mainframe applications on non-IBM servers. The second case was an investigation begun on the EC's own initiative that looked into IBM's alleged discriminatory behaviour towards competing suppliers of mainframe maintenance services.
In its initial reaction [2] to the EC's decision, IBM said that the allegations had been brought forward by "satellite proxies" of rival Microsoft. (Microsoft was the subject of a series of EU antitrust cases. [3] [4] ) IBM also noted [5] that the company holds numerous U.S. patents (some of which have also been filed in Europe) on its mainframe hardware technologies to protect its ongoing billions of dollars in new mainframe technology investments, that the vendors did not seek and did not pay for licenses to those patents, and that IBM should not be required to support infringement of its own patents.
After losing related court cases in the U.S. against IBM, T3 and Neon withdrew their European Commission complaints in August, 2011. TurboHercules also withdrew its complaint. [6] On September 20, 2011, the European Commission closed its investigation without action into alleged operating system and hardware tying. Separately, IBM agreed to provide mainframe spare parts and certain technical information for five years to maintenance firms. The Commission provisionally approved of IBM's proposed solution and, after a comment period, issued final approval in December, 2011. [7]
Hercules is a computer emulator allowing software written for IBM mainframe computers and for plug compatible mainframes to run on other types of computer hardware, notably on low-cost personal computers. Development started in 1999 by Roger Bowler, a mainframe systems programmer.
Tying is the practice of selling one product or service as a mandatory addition to the purchase of a different product or service. In legal terms, a tying sale makes the sale of one good to the de facto customer conditional on the purchase of a second distinctive good. Tying is often illegal when the products are not naturally related. It is related to but distinct from freebie marketing, a common method of giving away one item to ensure a continual flow of sales of another related item.
GO Corporation was founded in 1987 to create portable computers, an operating system, and software with a pen-based user interface. It was famous not only for its pioneering work in Pen-based computing but as well as being one of the most well-funded start-up companies of its time.
Amdahl Corporation was an information technology company which specialized in IBM mainframe-compatible computer products, some of which were regarded as supercomputers competing with those from Cray Research. Founded in 1970 by Gene Amdahl, a former IBM computer engineer best known as chief architect of System/360, it has been a wholly owned subsidiary of Fujitsu since 1997. The company was located in Sunnyvale, California.
Rambus Incorporated, founded in 1990, is an American technology company that designs, develops and licenses chip interface technologies and architectures that are used in digital electronics products. The company is well known for inventing RDRAM and for its intellectual property-based litigation following the introduction of DDR-SDRAM memory.
Criticism of Microsoft has followed various aspects of its products and business practices. Issues with ease of use, robustness, and security of the company's software are common targets for critics. In the 2000s, a number of malware mishaps targeted security flaws in Windows and other products. Microsoft was also accused of locking vendors and consumers in to their products, and of not following or complying with existing standards in its software. Total cost of ownership comparisons between Linux and Microsoft Windows are a continuous point of debate.
In a series of legal disputes between SCO Group and Linux vendors and users, SCO alleged that its license agreements with IBM meant that source code IBM wrote and donated to be incorporated into Linux was added in violation of SCO's contractual rights. Members of the Linux community disagreed with SCO's claims; IBM, Novell, and Red Hat filed claims against SCO.
Free and open-source software (FOSS) is a term used to refer to groups of software consisting of both free software and open-source software where anyone is freely licensed to use, copy, study, and change the software in any way, and the source code is openly shared so that people are encouraged to voluntarily improve the design of the software. This is in contrast to proprietary software, where the software is under restrictive copyright licensing and the source code is usually hidden from the users.
Plug compatible refers to "hardware that is designed to perform exactly like another vendor's product." The term PCM was originally applied to manufacturers who made replacements for IBM peripherals. Later this term was used to refer to IBM-compatible computers.
The multinational technology corporation Apple Inc. has been a participant in various legal proceedings and claims since it began operation and, like its competitors and peers, engages in litigation in its normal course of business for a variety of reasons. In particular, Apple is known for and promotes itself as actively and aggressively enforcing its intellectual property interests. From the 1980s to the present, Apple has been plaintiff or defendant in civil actions in the United States and other countries. Some of these actions have determined significant case law for the information technology industry and many have captured the attention of the public and media. Apple's litigation generally involves intellectual property disputes, but the company has also been a party in lawsuits that include antitrust claims, consumer actions, commercial unfair trade practice suits, defamation claims, and corporate espionage, among other matters.
Microsoft Corp. v. Commission is a case brought by the European Commission of the European Union (EU) against Microsoft for abuse of its dominant position in the market. It started as a complaint from Sun Microsystems over Microsoft's licensing practices in 1993, and eventually resulted in the EU ordering Microsoft to divulge certain information about its server products and release a version of Microsoft Windows without Windows Media Player. The European Commission especially focused on the interoperability issue.
Broadcom Inc. is an American multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, storage, and industrial markets. As of 2022, some 78 percent of Broadcom's revenue was coming from its semiconductor-based products and 22 percent from its infrastructure software products and services.
International Business Machines (IBM) is a multinational computer technology and IT consulting corporation headquartered in Armonk, New York, United States. IBM originated from the unification of several companies that worked to automate routine business transactions, including the first companies to build punched card-based data tabulating machines and build time clocks. In 1911, these companies were amalgamated into the Computing-Tabulating-Recording Company (CTR).
The European Committee for Interoperable Systems (ECIS) is an international non-profit association founded in 1989 in order to promote interoperability and market conditions in the Information and Communications Technology (ICT) sector allowing vigorous competition on the merits and a diversity of consumer choice. ECIS has represented its members on many issues related to interoperability and competition before European, national and international bodies, including the European Union institutions and the World Intellectual Property Organization (WIPO). ECIS members include large and smaller information and communications technology hardware and software providers as Adobe Systems, Corel Corporation, IBM, Linspire, Nokia, Opera Software, Oracle Corporation, RealNetworks, Red Hat, and Sun Microsystems.
Microsoft has been involved in numerous high-profile legal matters that involved litigation over the history of the company, including cases against the United States, the European Union, and competitors.
Proprietary software is software that is deemed within the free and open-source software community to be non-free because its creator, publisher, or other rightsholder or rightsholder partner exercises a legal monopoly by modern copyright and intellectual property law to exclude the recipient from freely sharing the software or modifying it, and—in some cases, as is the case with some patent-encumbered and EULA-bound software—from making use of the software on their own, thereby restricting their freedoms. It is often contrasted with open-source or free software. For this reason, it is also known as non-free software or closed-source software.
The acquisition of Sun Microsystems by Oracle Corporation was completed on January 27, 2010. After the acquisition was completed, Oracle, only a software vendor prior to the merger, owned Sun's hardware product lines, such as SPARC Enterprise, as well as Sun's software product lines, including the Java programming language.
The smartphone wars or smartphone patents licensing and litigation refers to commercial struggles among smartphone manufacturers including Sony Mobile, Google, Apple Inc., Samsung, Microsoft, Nokia, Motorola, Huawei, LG Electronics, ZTE and HTC, by patent litigation and other means. The conflict is part of the wider "patent wars" between technology and software corporations.
FairSearch is a group of organizations that lobby against Google's market dominance in online search and related practices. The group is controlled by Oracle and Naspers executives and has been characterized as a consumer protection organization, a Google watchdog, as well as a front group for Microsoft. Many of its other members are also Google competitors, such as Expedia and Oracle.
Since 2010, the European Union has investigated several antitrust complaints against Google alleging abuses of its dominant position in breach of the EU's competition laws. Three complaints have resulted in formal charges against Google: those relating to Google Shopping, the Android operating system and to Google AdSense. Google has been found guilty of antitrust breaches in the three cases and has been fined over €8 billion. In 2020, the European Union has also launched a full investigation of Google's proposed acquisition of the fitness tracker and wearable health company Fitbit, under the EU Merger Regulation. The operation was eventually cleared on 17 December 2020 subject to conditions.