Feeds

US gov and Oracle in court

PeopleSoft takeover faces first hurdle

  • alert
  • submit to reddit

Build a business case: developing custom apps

Oracle will be in court later today to defend itself against claims by the Department of Justice that its proposed acquisition of PeopleSoft would damage competition. The DoJ filed an anti-trust suit in San Francisco on the basis that the merger "lessens competition in an important market."

The DoJ wants to block the deal which it sees as a serious threat to the enterprise software market. The Department fears that the merger will effectively leave only two serious players in the market: Oracle and SAP. They could work together against the interests of users.

Oracle is expected to defend itself by talking up its vulnerability to competition from Microsoft and IBM and from smaller rivals like Lawson Software. It will seek to convince the judge that MS and IBM offer a challenge to Oracle's position in the enterprise software market. Neither company is targetting such customers at the moment but Oracle is expected to claim they will in future. Its other strategy would be to persuade the court that the DoJ has defined the market too narrowly.

Many observers are predicting a government win in court. The case will look at what impact the deal would have in the next two years making it harder for Oracle to introduce evidence of future competition.

The case is expected to last about a month.

The European Commission is conducting a separate, but broadly similar, investigation into the deal. ®

Related stories

Oracle slashes PeopleSoft offer
EC Oracle probe faces further delay
DoJ goes after Oracle's hidden secrets

Next gen security for virtualised datacentres

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.