European Commission to investigate Oracle-Sun deal
Regulator has 'serious concerns' about the deal's impact on competition in the database market.
IDG News Service - BRUSSELS - The European Commission today opened an in-depth investigation into Oracle's planned $7.4 billion takeover of Sun Microsystems, citing "serious concerns" about the deal's effect on competition in the market for databases.
Europe's top competition authority called for a closer look at the deal after conducting a routine monthlong examination.
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," said Competition Commissioner Neelie Kroes in a statement. Sun competes against Oracle, among others, with its open source database, MySQL.
The commission's job in the extended investigation "is to ensure that customers would not face reduced choice or higher prices as a result of this takeover," she said.
The database market is highly concentrated with the three main competitors of proprietary databases -- Oracle, IBM and Microsoft -- controlling roughly 85% percent of the market in terms of revenue, the commission said in a statement. Oracle is the market leader in proprietary databases, while Sun's MySQL database product is the leading open source database. The Oracle databases and Sun's MySQL "compete directly in many sectors of the database market and MySQL is widely expected to represent a greater competitive constraint as it becomes increasingly functional," the commission said.
The commission said that during its initial probe it found that the open source nature of Sun's MySQL might not eliminate fully the potential for anti-competitive effects.
"In its in-depth investigation, the commission will therefore address a number of issues, including Oracle's incentive to further develop MySQL as an open source database," the commission said.
Earlier this week, Sun reported a 31% drop in sales during the quarter running from April to June, compared with sales during the same period in 2008. Operating loss for the quarter was $218 million, compared with an operating profit of $63 million a year earlier.
This state transportation department uses computer science students from a local university as programming interns, and everyone is happy with the arrangement -- until one intern learns how to bring down the mainframe.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Path Selection Infographic
- Path Selection Infographic
- Hyperconvergence Infographic
- A wide range of observers agree that data centers are now entering an era of "hyperconvergence" that will raise network traffic levels faster...
- Preparing Your Infrastructure for the Hyperconvergence Era
- From cloud computing and virtualization to mobility and unified communications, an array of innovative technologies is transforming today's data centers.
- How WAN Optimization Helps Enterprises Reduce Costs
- If you wanted to break down innovation into a tidy equation, it might go something like this: Technology + Connectivity = Productivity. Productivity... All Government IT White Papers
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- LIVE EVENT: 5/7, The End of Data Protection As We Know It. Introducing a Next Generation Data Protection Architecture. Traditional backup is going away, but where does this leave end-users?
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the...
- Endpoint Data Management: Protecting the Perimeter of the Internet of Things Not surprisingly, "Internet of Things" (IoT) and Big Data present new challenges AND opportunities for enterprise IT. Teams need to harness, secure and...
- All Government IT Webcasts