Results 1 to 5 of 5

Thread: IBM, antitrust, bundling:

  1. #1
    Educator

    Join Date
    Jul 2009
    Last Seen
    Yesterday @ 02:26 PM
    Lean
    Undisclosed
    Posts
    1,164

    IBM, antitrust, bundling:

    IBM, antitrust, bundling:

    This Federal decision opened computer markets to IBM's competitors.* They were well on their way to becoming a computer industry monopoly.

    Excerpted from:
    I.B.M. Is Found Guilty in Antitrust Suit And Told to Pay Telex $352.5‐Million - The New York Times
    The giant computer company was also enjoined from €œadopting, implementing or carrying out predatory pricing, leasing or other acts, practices or, strategies with the intent to obtain or maintain a monopoly in the market.€
    The decision ordered I.B.M. to halt €œsingle or bundled€ pricing of memory systems in its System 370 central processing unit and to price memories and processing units separately within 60 days.
    I.B.M. also was instructed to release to competitors some of its design specifications for certain products.

    Telex for its part was ordered to pay I.B.M. $21,913,766 for infringement of I.B.M. copyrighted manuals and for hiring I.B.M, employees to get trade secrets from them. This action was a result of a counter-suit by I.B.M.

    The decisions, handed down by Federal Judge A. Sherman Christensen, of Salt Lake City, and released in Federal Court here this morning in a 217€page document, found I.B.M. guilty of €œpossessing and exercising monopoly power€ over the €œplug compatible peripheral equipment market,€ comprising such items as memories, tape devices and printers that plug directly into the main processing unit of a computer.
    Last edited by I'm Supposn; 05-28-19 at 12:55 AM.

  2. #2
    Sage
    Crovax's Avatar
    Join Date
    Feb 2014
    Location
    South Texas
    Last Seen
    Yesterday @ 09:06 PM
    Gender
    Lean
    Conservative
    Posts
    11,956

    Re: IBM, antitrust, bundling:

    Quote Originally Posted by I'm Supposn View Post
    IBM, antitrust, bundling:

    This Federal decision opened computer markets to IBM's competitors.* They were well on their way to becoming a computer industry monopoly.

    Excerpted from:
    I.B.M. Is Found Guilty in Antitrust Suit And Told to Pay Telex $352.5‐Million - The New York Times
    The giant computer company was also enjoined from €œadopting, implementing or carrying out predatory pricing, leasing or other acts, practices or, strategies with the intent to obtain or maintain a monopoly in the market.€
    The decision ordered I.B.M. to halt €œsingle or bundled€ pricing of memory systems in its System 370 central processing unit and to price memories and processing units separately within 60 days.
    I.B.M. also was instructed to release to competitors some of its design specifications for certain products.

    Telex for its part was ordered to pay I.B.M. $21,913,766 for infringement of I.B.M. copyrighted manuals and for hiring I.B.M, employees to get trade secrets from them. This action was a result of a counter-suit by I.B.M.

    The decisions, handed down by Federal Judge A. Sherman Christensen, of Salt Lake City, and released in Federal Court here this morning in a 217€page document, found I.B.M. guilty of €œpossessing and exercising monopoly power€ over the €œplug compatible peripheral equipment market,€ comprising such items as memories, tape devices and printers that plug directly into the main processing unit of a computer.
    nothing ever came of that lawsuit

    I.B.M. AND TELEX HALT LITIGATION - The New York Times

  3. #3
    Educator

    Join Date
    Jul 2009
    Last Seen
    Yesterday @ 02:26 PM
    Lean
    Undisclosed
    Posts
    1,164

    Re: IBM, antitrust, bundling:

    Quote Originally Posted by Crovax View Post
    Crovax, prior to that federal order, almost everything in the data processing and computer industry was IBM. They were I suppose, over 80% of the industry. Now the hardware and software are much more competitive. Due to the federal order that IBM unbundle the sales and rental of their products and services, purchasers can choose main processing units, peripheral equipment, software and services from any mixture among IBM and/or any other enterprises throughout the entire world.

    Respectfully, Supposn

  4. #4
    Sage
    Crovax's Avatar
    Join Date
    Feb 2014
    Location
    South Texas
    Last Seen
    Yesterday @ 09:06 PM
    Gender
    Lean
    Conservative
    Posts
    11,956

    Re: IBM, antitrust, bundling:

    Quote Originally Posted by I'm Supposn View Post
    Crovax, prior to that federal order, almost everything in the data processing and computer industry was IBM. They were I suppose, over 80% of the industry. Now the hardware and software are much more competitive. Due to the federal order that IBM unbundle the sales and rental of their products and services, purchasers can choose main processing units, peripheral equipment, software and services from any mixture among IBM and/or any other enterprises throughout the entire world.

    Respectfully, Supposn
    Again none of that happened because of that lawsuit, that judgement never went into effect as it was in appeals and eventually dropped altogether. The bigger lawsuit was the one that the US justice dept was trying to build against IBM but that got dropped too because IBMs market share had naturally deteriorated on its own. IBM voluntarily unbundled their software from their hardware in 1968 and that was a much bigger factor in growing development of technology.

  5. #5
    Educator

    Join Date
    Jul 2009
    Last Seen
    Yesterday @ 02:26 PM
    Lean
    Undisclosed
    Posts
    1,164

    Re: IBM, antitrust, bundling:

    Quote Originally Posted by I'm Supposn View Post
    Crovax, prior to that federal order, almost everything in the data processing and computer industry was IBM. They were I suppose, over 80% of the industry. Now the hardware and software are much more competitive. Due to the federal order that IBM unbundle the sales and rental of their products and services, purchasers can choose main processing units, peripheral equipment, software and services from any mixture among IBM and/or any other enterprises throughout the entire world. ...
    Quote Originally Posted by Crovax View Post
    Again none of that happened because of that lawsuit, that judgement never went into effect as it was in appeals and eventually dropped altogether. The bigger lawsuit was the one that the US justice dept was trying to build against IBM but that got dropped too because IBMs market share had naturally deteriorated on its own. IBM voluntarily unbundled their software from their hardware in 1968 and that was a much bigger factor in growing development of technology.

    Crovax, IBM's “voluntary” unbundling would not have occurred if such suites against IBM were not going to be heard in the courts.
    I agree, that unbundling was the bigger factor.

    Refer to the entire NY Times article,
    https://www.nytimes.com/1973/09/18/archives/ibm-is-found-guilty-in-antitrust-suit-and-told-to-pay-telex.html


    Respectfully, Supposn
    Last edited by I'm Supposn; 05-28-19 at 01:50 PM.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •