Thursday, October 8, 2009
Justice Department Looking to Punch IBM’s Card?
It has been nearly eight years since the U.S. Department of Justice agreed to dissolve its 1956 consent decree with IBM, lifting restrictions that had prevented the company from becoming a monopoly in the market for punch card tabulating machines. But perhaps those restrictions were better left in place. Because on Thursday, the DOJ opened a new investigation into IBM’s business practices, seeking to determine if the company has abused its monopoly position in the mainframe market.
Microsoft’s proposed antitrust concessions, particularly its offer to give European computer users a choice of Web browsers, appear to have gone over well with the European Commission. This morning, the EC announced a market test of the browser ballot feature Microsoft plans to include in Windows 7.
The European Commission’s inquiry into Oracle’s proposed acquisition of Sun is costing the database giant dearly. Speaking at a Churchill Club event in Silicon Valley Monday evening, Oracle CEO Larry Ellison said Sun is losing $100 million a month because of the extended European antitrust review. He also said he’d like his company to be “the successor to IBM.”
Intel’s criticism of the European Commission’s legal acumen clearly has not gone over well in Brussels. The EC today responded to Intel’s claims that the Commission’s antitrust ruling against the company was meted out in error by releasing the full text of its decision and a selection of email correspondence and internal memos that make it clear that Intel probably should have kept its big mouth shut.
“Manifestly disproportionate.” That’s how Intel describes the record $1.45 billion antitrust fine levied against it by the European Union, one the company evidently believes was meted out in error.
Longtime Intel general counsel Bruce Sewell, who left the company without explanation yesterday, evidently had good reason for doing so: He has taken a new job at Apple. That would certainly explain the “surprise” Intel expressed over his departure. And also why the company was so quick to remove his corporate bio from its Web site. 
Pat Gelsinger isn’t the only Intel veteran leaving the company amid the big management restructuring announced today. Longtime general counsel Bruce Sewell is taking his leave as well. Which is odd, since Sewell has been quarterbacking Intel’s fight against antitrust allegations at home and abroad since, well, since they were first brought against the company.
Sun Microsystems’s last quarterly report as an independent company was about as miserable as earnings reports get. No surprise, then, that the company didn’t bother to issue a press release or hold a conference call with analysts to discuss them.
Get this: Microsoft has been holding secret “Screw Google” meetings in Washington at which the company schemes to undermine Google and prevent it from subsuming the businesses that took it decades to build. Those ruthless, conniving bastards. Strategizing to thwart a rival.
The Justice Department’s extended antitrust review of Oracle’s proposed acquisition of Sun apparently turned up few issues of concern. Oracle said this afternoon that regulators have approved the $7.4 billion deal with no restrictions.
