EU to investigate Oracle-Sun deal

Sun and Oracle logoFinal approval of Oracle's $7.4 billion takeover of Sun Microsystems has just hit a snag, courtesy of European regulators.

The European Commission announced Thursday that it has launched an in-depth investigation into the proposed merger between Oracle and Sun. The agency said its preliminary probe raised concerns that the deal could threaten competition in the database market in the European Economic Area (EEA), an association composed of 30 different European countries.

That initial investigation showed that Oracle's proprietary databases and Sun's open-source MySQL compete directly in many areas of the market, so the Commission wants to address a number of issues, including Oracle's incentive to further develop MySQL as an open-source database.

Competition Commissioner Neelie Kroes said in a statement: "The Commission has to examine very carefully the effects on competition in Europe when the world's leading proprietary database company proposes to take over the world's leading open source database company. In particular, the Commission has an obligation to ensure that customers would not face reduced choice or higher prices as a result of this takeover."

Pointing out the importance of databases to corporate IT systems, the Commission said that in light of the current economy, companies need cost-effective solutions. "And systems based on open-source software are increasingly emerging as viable alternatives to proprietary solutions," said Kroes. "The Commission has to ensure that such alternatives would continue to be available."

The Commission, which is the executive arm of the European Union, now has 90 working days, until January 19, 2010, to make a final decision on the merger.

Oracle had little comment except to say in a statement that the Commission had decided to "seek out more information regarding the merger by launching a Phase Two inquiry," which indicates a more in-depth follow-up to the initial probe.

The merger has already been approved by Sun stockholders and by the U.S. Justice Department.

Source: CNET

Tags: Oracle, Sun

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Pokemon GO had the potential to net $1 billion a year
The report said that Hon Hai has invested about US$600 million in India
Market research firm IDC reports that in the third quarter of this year
Customers will only have to shell out 50% of the cost of their Galaxy S7 device
New flagship will launch in 2017
Patent hints at name of the upcoming Surface AIO
IBM, Globalfoundries and Samsung have chosen to use extreme ultraviolet (EUV) light to pattern transistors
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you use microSD card with your phone?
or leave your own version in comments