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August 14, 1988

ANTI-TRUST VICTORY FOR IBM

By CBR Staff Writer

Yet another anti-trust victory for IBM as a federal judge in Philadelphia has ruled in favour of the company the other day in that antitrust lawsuit brought in 1985 by Allen-Myland Inc of Broomall, Pennsylvania: Judge Thomas O’Neill decided last month that IBM’s practices in the pricing of computer upgrades did not violate antitrust laws, and found that IBM’s pricing practices were reasonable responses to legitimate business needs and had procompetitive effects; Allen-Myland had alleged that IBM violated anti-trust laws by selling mainframe upgrades with installation charges included, and that IBM’s Installation and Warranty Service Charge for IBM computers purchased in one country and the installed in another was an anti-trust violation, which the judge also rejected.

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