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EU issues objections to Oracle's Sun acquisition

James Niccolai | Nov. 10, 2009
The Commission's statement of objections focuses on its concerns about Oracle owning the open-source MySQL database

Oracle is no stranger to antitrust investigations. The U.S. Department of Justice tried to block Oracle's acquisition of PeopleSoft on the grounds that it would unacceptably contract the enterprise software applications market to two large players, Oracle and SAP.

Oracle won that case in 2004, by convincing U.S. District Court Judge Vaughn Walker that there were many other competitors in that market, albeit smaller ones.

The DOJ issued its own statement Monday explaining its decision to approve the Sun-Oracle deal. It said there are "many open-source and proprietary database competitors" and that there is a large community of open-source developers with expertise in maintaining and improving Sun's open-source software.

"At this point in its process, it appears that the EC holds a different view," the DOJ said. "We remain hopeful that the parties and the EC will reach a speedy resolution that benefits consumers in the Commission's jurisdiction."

Oracle CEO Larry Ellison has said that Sun is losing $100 million per month as it waits for the deal to close.

On Friday Sun released its financial results for the last quarter, ended Sept. 27. Revenue was $2.24 billion, down from $2.99 billion a year earlier. Its losses narrowed to $120 million, from $1.68 billion in the same quarter last year, thanks largely to cost-cutting efforts.

 

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