SAP and MS line up for and against Oracle

Letters to the DoJ

By John Leyden • Get more from this author

Posted in Hardware, 9th March 2004 12:25 GMT

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Oracle has won the unexpected support of SAP in its fight to oppose a Department of Justice (DoJ) ruling blocking its $9.4bn bid for PeopleSoft.

SAP has written in support Oracle's contention that the market for enterprise applications software is more diverse and much bigger than a three-way fight between Oracle, PeopleSoft and SAP. However, Microsoft looks set undermine this argument by swearing that it will not be entering a market - in which Oracle says it has participated in for at least two years - CNET reports.

Last month the DoJ began a civil anti-trust suit in the US District Court in San Francisco seeking to block Oracle's hostile bid for PeopleSoft. The DoJ says a takeover would result in higher prices, less innovation and fewer choices for customers.

In a countersuit filed last week, Oracle seeks to rebuff DoJ claims that Oracle’s acquisition of its smaller rival would violate the Clayton Antitrust Act. It says its proposed acquisition of PeopleSoft will spur competition in the corporate software market, helping it to combat "clear market leader" SAP and rising threat Microsoft. ®