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Justice eyes disk-drive pact

The Justice Department is looking into a disk-drive pact alliance between IBM and Storage Technology to determine whether it violates antitrust law.

The Justice Department is looking into a disk-drive pact alliance between IBM and Storage Technology to determine whether it violates antitrust law.

The deal, reached in June, lets IBM resell StorageTek's data storage device for IBM mainframes. The investigation was disclosed in Storage Technology's quarterly filing to the Securities and Exchange Commission.

Bill Brooks, a Justice Department spokesman, confirmed an investigation is checking into possible anti-competitive practices in the storage devices industry, but he declined to name specific companies.

The two companies are cooperating with the investigation, but both contend the deal will go through.