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Oracle counters EC competition claims

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Oracle will defend itself against European Commission claims that its takeover of PeopleSoft would damage competition - by pointing to smaller competitors.

The EC has said there a takeover would result in insufficent competition, reducing the number of companies offering enterprise software from three to just two: SAP and Oracle. It is concerned that the two companies will, consciously or not, work together against the interests of consumers.

But Oracle says the EC is ignoring smaller competitors such as Baan. Microsoft is another possible player in the market, since it bought Navision and Great Plains Software.

Oracle will argue that the Commission is ignoring smaller competitors and the market for similar software used by smaller companies, according to sources quoted by Bloomberg.

The EC is to rule on the deal 11 May. The US Department of Justice is also looking closely at the deal but will not meet Oracle in court until early June. ®

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