European antitrust regulators announced Monday that they're extending their review of Oracle's hostile bid for PeopleSoft into an in-depth second phase.
The decision by the European Commission, which serves as the antitrust agency for the European Union, will prolong the review by up to four months, a move that was largely expected given the size of the deal and Oracle's presence in Europe. "The Commission will, in particular, investigate the impact of the transaction on the markets for business applications software used by large multinational companies to coordinate and plan their financial and human resources and their relationship with customers, among other things," the Commission said in a press release.
European regulators also said their initial one-month investigation has shown that a possible merger of two of the largest competitors in the business applications market merits a closer examination because "the number of key players would be reduced from three to two--Oracle and SAP--in certain applications software markets." In addition to looking at the effects on the business applications market, European regulators may also review the potential effects to the relational database market, Oracle's core strength.
During the four-month investigation, European antitrust regulators can make a decision at any point to approve the deal, allow it to go through with modifications, or reject it. The European Commission "has become a key player in antitrust in recent years.
News source: C|net
-1 Comments - Add comment