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September 14, 1973: IBM Antitrust Lawsuit

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1973 – IBM had a suit filed in January of 1972 by Telex. They accused IBM of monopolizing the “plug compatible” equipment market. This included tape and disk drives, along with other add-on memories.

Judge Sherman Christensen hands down his 222 page verdict. He found that both Telex and IBM were guilty for the allegations waged against each other. Telex is awarded $350 million and IBM will be restrained in its ability to market its computer and software bundles. IBM, in turn, is awarded $22 million.

This suit began a witch hunt and other suits against IBM came up. CalComp, Memorex and Marshall Industries filed suits and won over 3 billion from Big blue.

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