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Tuesday, 10 November 2009 - Oracle vows fight as EC objects to acquisition of Sun
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    Read more with google mobile : Oracle vows fight as EC objects to acquisition of Sun

    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Oracle vows fight as EC objects to acquisition of Sun AFP - Tuesday, November 10 Send IM Story Print A sign is posted outside of the Sun Microsystems headquarters in Santa Clara, California. The European Commission has objected on competitive grounds to US business software giant Oracle's proposed takeover of Sun Microsystems, Sun said on Monday. WASHINGTON (AFP) - – The European Commission has objected on competitive grounds to the proposed acquisition of Sun Microsystems by US business software giant Oracle, Sun said on Monday. Sun, in a filing with US regulators, said that the EC has issued a so-called preliminary "statement of objections" to the proposed 7.4-billion-dollar deal. The EC objections were limited to the combination of Sun's open source MySQL database product with Oracle's enterprise database products and "potential negative effects on competition in the market for database products," Sun said. The Santa Clara, California-based Sun noted that a statement of objections "does not prejudge the European Commission's final decision" and is subject to appeal, and Oracle said it planned to "vigorously oppose" the EC move. "The transaction does not threaten to reduce competition in the slightest, including in the database market," Oracle said in a statement." The Redwood Shores, California-based Oracle said "the Commission's Statement of Objections reveals a profound misunderstanding of both database competition and open source dynamics. "The database market is intensely competitive with at least eight strong players, including IBM, Microsoft, Sybase and three distinct open source vendors," Oracle said. "Oracle and MySQL are very different database products. There is no basis in European law for objecting to a merger of two among eight firms selling differentiated products," it said. "Mergers like this occur regularly and have not been prohibited by United States or European regulators in decades," Oracle said. "Given the lack of any credible theory or evidence of competitive harm, we are confident we will ultimately obtain unconditional clearance of the transaction," Oracle said. The US Justice Department, which gave the deal the green light in August, also reaffirmed its support on Monday. "After conducting a careful investigation of the proposed transaction between Oracle and Sun, the Department's Antitrust Division concluded that the merger is unlikely to be anticompetitive," Deputy Assistant Attorney General Molly Boast said in a statement. "At this point in its process, it appears that the EC holds a different view," she said. "We remain hopeful that the parties and the EC will reach a speedy resolution that benefits consumers in the Commission's jurisdiction. "The Department and the European Commission have a strong and positive relationship on competition policy matters," Boast added. "The two competition authorities have enjoyed close and cooperative relations. "The Antitrust Division will continue to work constructively with the EC and competition authorities in other jurisdictions to preserve sound antitrust enforcement policies that benefit consumers around the world," she said. Sun, a one-time Silicon Valley star, is the developer of the popular Java programming language. Sun is also the fourth-largest maker of computer servers but has been steadily losing market share to IBM as well as Hewlett-Packard and Dell. IBM also made a bid to acquire Sun but was edged out by Oracle. Oracle develops, manufactures and distributes company software and is the market leader in proprietary databases -- big beasts for large-scale management of commercial information by businesses. Sun, meanwhile, has built up the leading open source databases -- which are now able to support similarly large-scale commercial databases running to hundreds of computing gigabytes in size. Oracle, IBM and Microsoft together control about 85 percent of the database market in terms of revenue, according to the EU. Sun last month announced it was cutting 3,000 jobs over the next 12 months because of its delayed takeover by Oracle. Recommend Send IM Story Print Related Articles LinkedIn and Twitter link up Reuters - 1 hour 16 minutes ago Yahoo says to grow operating margin at 15-20 percent pace Reuters - 2 hours 45 minutes ago Blackberry buddies up to game developers AFP - Tuesday, November 10 Oracle vows fight as EC objects to acquisition of Sun AFP - Tuesday, November 10 Electronic Arts to cut 1,500 jobs AFP - Tuesday, November 10 News Search Top Stories Google buys mobile ad firm in 750-mln-dollar deal Kraft Foods launches hostile Cadbury bid Women deprived of health care at key times in life: WHO Gazprom profits plunge 49.8% Britney 'upset' over Aussie lip-synching row: promoter More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Britney 'upset' over Aussie lip-synching row: promoter Japan eyes solar station in space Kraft Foods launches hostile Cadbury bid Google buys mobile ad firm in 750-mln-dollar deal Gold price hits record after 'Sri Lanka purchase' More Most Viewed » Somali centenarian weds 17-year-old Mobile phone giant Nokia sues Apple over patents Fibre may keep asthma, diabetes at bay, study finds More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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