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EU antitrust probe of IBM

Dick Taffe — Mon, 26 Jul 2010 15:27:57 +0000

Euopean Union regulators launched two antitrust investigations against IBM, the world’s biggest provider of computer services, for allegedly abusing its dominant position on the mainframe computer market. IBM says it’s cooperating with the EU probe and that it suspects the complaint is being driven by its largest competitors, led by Microsoft. Law Professor Keith Hylton, an authority on antitrust law, notes that the allegations revolve around IBM trying to tie its operating system to its mainframes, and to tie its own service to its mainframes. IBM, he said, could defend itself saying it is protecting itself by limiting consumers from using inferior services or to bettter reap the returns from innovation.

“Both explanations have been viewed with suspicion as defenses in American law, and probably have even less chance of success under European law. Still, they are reasons that IBM’s ‘tying’ strategies may be pro-competitive and beneficial to consumers in the long term.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

EU rejects U.S. data-sharing deal

Dick Taffe — Thu, 11 Feb 2010 18:23:36 +0000

In a blow to the effort to stem the flow of international financing for terrorism, the European Parliament rejected a controversial data-sharing deal with the United States, citing privacy concerns. International relations Professor William Keylor, an authority on U.S.-European relations, says the snub demonstrates how fighting a global war on terrorism is tough without full agreement on strategies.

“As long as an economic superpower such as the EU is unwilling to cooperate in measures to interrupt the financing of terrorism, unilateral American actions to shut down such financing operations are doomed to failure.”

Contact William Keylor, 617-358-1097, wrkeylor@bu.edu

EU seeks Greece economic rescue

Dick Taffe — Wed, 10 Feb 2010 17:23:55 +0000

European Union governments are grappling how to manage the debt crisis in Greece that threatens to undermine the shared euro currency. Economics Professor Laurence Kotlikoff, who a decade ago in Foreign Affairs magazine predicted the euro’s collapse, says Greece’s debt woes are a precursor to what may happen in the U.S.

“Greece is where the United States is heading. Indeed, there is strong reason to believe that the U.S. is in much worse fiscal shape than is Greece.”

Contact Laurence Kotlikoff, 617-353-4002, kotlikoff@bu.edu

EU and Jerusalem

Dick Taffe — Tue, 01 Dec 2009 21:28:13 +0000

A European Union initiative, to be considered next week, would carve off east Jerusalem as the capital if an independent Palestinian state. Israel rejects the concept. Journalism Professor Bob Zelnick, a former ABC News Middle East correspondent and author of “Israeli Unilateralism: Beyond Gaza,” says the Israel, the Palestinians, and the U.S. all have missed recent chances to make peace in the region.

“We have here a situation where brains and judgment appear to have recused themselves from the peace process.”

Contact Bob Zelnick, 617-353-5007, bzelnick@bu.edu

Senators push EU on antitrust case

Dick Taffe — Wed, 25 Nov 2009 19:30:01 +0000

Led by John Kerry and Orrin Hatch, 59 U.S. senators are urging European antitrust regulators to make a decision on the proposed Oracle merger with Sun Microsystems. Law Professor Keith Hylton, an antitrust law expert, says the intervention reflects a disproportionate political influence by Sun relative to its importance to the economy.

“This sort of intervention by members of Congress is overdue. There should have been a frank dialogue about competition policy differences several months (or maybe years) ago.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu

EU, Turkey sign gas pipeline deal

Dick Taffe — Mon, 13 Jul 2009 18:31:22 +0000

Aimed at cutting Europe’s reliance on energy from Russia, Turkey and five European Union nations today signed a landmark agreement to run a gas pipeline from the Caspian Sea area to Europe via Turkey. Energy risk-management expert Mark T. Williams, who teaches finance in the School of Management, can discuss what this could mean for global energy trade.

Contact Mark T. Williams, 617-358-2789, williams@bu.edu

EU fining Intel will hurt US firms, consumers

Dick Taffe — Wed, 13 May 2009 13:44:38 +0000

School of Law Professor Keith Hylton, an authority on antitrust law, says the EU slapping Intel with a record $1.45 billion fine could hurt consumers and hamper U.S. companies trying to compete globally.

“The EC decision to impose the largest fine in its history on Intel, largely for its price cutting, sends a worrisome signal to dominant firms in the U.S.

“Antitrust law in the U.S. has largely abandoned the idea that consumers can be made better off by punishing firms that cut prices aggressively. Punishing large firms for cutting prices provides a strong incentive for those firms to avoid price competition, and this hurts consumers in the long run.

“Recognizing this, U.S. antitrust law has in effect provided a safe harbor from antitrust liability for large firms that cut prices when selling to U.S. consumers. The EC decision on Intel effectively destroys that safe harbor once the firms start selling their goods on the global market.”

Contact Keith Hylton, 617-353-8959, knhylton@bu.edu