GPL Does Not Violate Antritrust Laws

Free open-source software covered by a General Public License (GPL) does not violate the U.S. antitrust laws, the Seventh Circuit has confirmed.

Daniel Wallace filed an antitrust action contending that the GPL violates the antitrust laws. The GPL prohibits the creator, or anyone who makes revisions to certain software, from charging for the work. The most famous GPL software is Linux. Wallace contended that IBM, Red Hat and Novell have conspired to eliminate competition in the operating system market by making Linux available for free, thereby undercutting the price for any potential rival.

The opinion notes that the GPL is not price fixing even though it sets the price at zero. “GPL does not restrain trade,” wrote Judge Easterbrook. “The GPL and open-source software have nothing to fear from the antitrust laws.”

Wallace v. International Business Machines Corporation et al., Seventh Cir. No. 06-2454, November 9, 2006.