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EC Schedules Sun Oracle Hearing For 25 November

The EC and Competition Commissioner Neelie Kroes have scheduled the Oracle-Sun hearing for 25 Nov at the EC offices in Brussels, a source reveals to eWEEK

Oracle now has a date with the European Commission to argue its case before antitrust regulators in its quest to acquire Sun Microsystems.

The EC and Competition Commissioner Neelie Kroes scheduled the hearing for Nov. 25 at the EC offices in Brussels, a source with knowledge of the transaction revealed on 10 Nov to eWEEK.

On 9 Nov, the EC informed both Oracle and Sun that it was filing an official objection to the proposed transaction because it includes ownership of the freely available and popular MySQL Web database, which Sun bought for $1 billion in January 2008

The regulators did not contest the Sun acquisition of MySQL because Sun is not primarily a database company. However, the EC does contend that there is a major conflict of interest in the world’s largest commercial database company, Oracle, owning its largest open-source competitor.

The EC holds a great deal of influence in this case. Oracle does business in just about every EU nation and stands to lose a huge amount of business if the EC does not bless the deal.

The U.S. Department of Justice, which approved the pending $7.4 billion transaction on 20 Aug. said on 9 Nov. it believes customers would still have a variety of choices after the merge and that it was unlikely to be anticompetitive.

“There are many open-source and proprietary database competitors,” wrote Deputy Assistant Attorney General Molly Boast of the DOJ’s Antitrust Division.

“The Division concluded … that consumer harm is unlikely because customers would continue to have choices from a variety of well-established and widely accepted database products. The department also concluded that there is a large community of developers and users of Sun’s open-source database with significant expertise in maintaining and improving the software, and who could support a derivative version of it.”

The EC issued a quick response. “That’s unusual. I cannot recall any instance where the European Commission has ever issued a statement concerning ongoing investigations in another jurisdiction,” Jonathan Todd, a spokesperson for Kroes, told a press conference in Brussels.

“We have our methods, they have theirs. We apply European merger control rules, they apply U.S. merger control rules,” Todd said.

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0 replies to EC Schedules Sun Oracle Hearing For 25 November

  • On November 13, 2009 at 1:14 am byDavid Foley

    I think the European Commission’s opposition to the Merger is fantastic! They really have their homework done here. The dogs on the street know that the acquisition of Sun by Oracle is going to undermine MySQL. Sun is very important to open source and showed strong leadership. However if they are not in control of their own destiny this could have negative consequences. The EU is a champion of competition as they have shown in the way they have dealt with Microsoft in the past. More power to them, they make me proud to be European. It also makes Ireland’s Yes vote to the Lisbon treaty feel slightly rewarding.

    Dublin, Ireland

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