Competition Authority blocks IBM merger

The Competition Authority has blocked a proposed merger between IBM Ireland and Schlumberger Business Continuity Services.

It says the acquisition would substantially lessen competition for business recovery hotsite services in Ireland.

The two companies are market leaders in the sector and between them would have an 80% market share.

The authority believes would leave customers with insufficient alternatives and no choice but to bear a price increase.

Today's ruling is the first of its kind since new laws came into effect in January of last year, and follows a five month investigation.