ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, July 3, 1996 TAG: 9607030076
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Knight-Ridder/Tribune
The Justice Department on Tuesday said it had reached a settlement with IBM that will end the remaining provisions of the government's 1956 antitrust decree against the giant manufacturer of computers.
The settlement, which must be approved by the U.S. District Court in New York, extends the decree's main provisions into the next century and resolves litigation between the government and IBM. Justice said the extension will give those who have made business decisions based on the decree time to make adjustments before it expires.
The main provisions of the agreement required IBM, based in Armonk, N.Y., to sell its machines as well as lease them, and to provide service and sell parts for IBM computers after they were no longer owned by IBM. That created a market in used equipment that competed with IBM's new machines and limited its monopoly power in the computer market, the government said.
The settlement ends in four years the decree that applies to midframe computers. The provisions that apply to mainframe computers ends in five years.
A few provisions would terminate in six months. A few would end immediately.
In January, the Justice Department agreed to immediately terminate provisions involving personal computers and work stations, markets in which IBM faces considerable competition.
The agency said the settlement, on which the public has 60 days to comment, reflects changes in the competitive climate in the computer industry.
LENGTH: Short : 38 linesby CNB