Posted 11/10/09 at 07:07:11 AM by Paul Lilly

Coming as a surprise to absolutely no one, the European Union on Monday formally objected to Oracle's proposed takeover of Sun. The EU's hard stance could throw a wrench in the $7.4 billion deal that had already been approved by U.S. officials.

The sole sticking point for the EU is that the deal would give Oracle control over Sun's free MySQL database software. Because Oracle sells its own database software, the EU fears the company would purposely hamstring MySQL in order to boost its own sales.

"The Commission's Statement of Objections reveals a profound misunderstanding of both database competition and open source dynamics," Oracle said in response to the objection. "It is well understood by those knowledgeable about open source software that because MykSQL is open source, it cannot be controlled by anyone. That is the whole point of open source."

Oracle will have an opportunity to respond to the EU's objections before it makes its final ruling on the deal by January 19. Even then, should the EU outright reject the deal, Oracle could file an appeal. The alternative is to back out of the acquisitionl, which would cost Oracle a $260 million breakup fee, the Wall Street Journal reports.

Read More

Posted 11/04/09 at 08:08:25 AM by Paul Lilly

Oracle knows it's in for a fight with the European Union over the U.S. company's planned $7.4 billion acquisition of Sun Microsystems, but appears ready to go the rounds, according to a Financial Times report.

The EU is mainly concerned about whay Oracle might end up doing with Sun's MySQL code base, such as killing it off or dropping support in order to push its own non-free database package. And according to FT.com, one person close to the process says the EU is ever-so-close to issuing an official statement of objection, which is step one in blocking the deal.

It's unlikely Oracle will back down, choosing instead to wait and see what the EU decides. Should the Commission object, Oracle could choose to offer concessions or take its fight to court.

The Sun acquisition has already been given the green light by the U.S. Department of Justice.

Read More

Posted 07/08/09 at 10:04:00 AM by Paul Lilly

Looking to avoid any further fines from the European Union, which has been anything but bashful in levying big money fines against big money corporations, Microsoft is in talks to settle two additional probes that could potentially add to the $2.34 billion it has already had to fork over from previous cases.

The most pressing matter is a case over Microsoft's Internet Explorer browser, in which Microsoft has previously stated it would ship a version of Windows 7 for distribution in Europe with IE8 stripped out. This came in response to the commission saying it was considering forcing Microsoft to offer consumers a choice of browsers when configuring a new PC. Microsoft canceled a June hearing in the browser case, saying not enough EU and national competition authorities would be able to attend.

"It's in their interest to settle before the EU has to impose sanctions," said Matt Rosoff, an analyst at Kirkland, Washington-based Directions on Microsoft. "That way at least Microsoft has some control over the actions they're going to take if they can agree in private."

But the browser issue isn't the only thing the EU is concerned with. The EU is also looking into complaints that Microsoft doesn't provide formatting and other information for rival products to work with Microsoft Office software, such as Word and Excel, Bloomberg reports.

Read More

Posted 05/13/09 at 01:01:02 PM by Paul Lilly

When AMD heard the news that the European Commission had found Intel guilty of anticompetitive business practices and hit the No. 1 chip maker with a record setting $1.45 billion fine, we imagine the response behind closed doors was something along the lines, "Woohoo!!," followed by a series of high-fives. After all, AMD has been crying foul for years over allegations that Intel was issuing illegal rebates and other incentives to vendors and retailers to stop them from selling AMD chips. But while AMD execs are probably dancing on their desks in jubilation, the No. 2 chip maker's official response took on a decidedly more business-like (though no less giddy) tone.

"After an exhaustive investigation, the EU came to one conclusion - Intel broke the law and consumers were hurt," said Tom McCoy, AMD executive vice president for legal affairs. "With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value, and innovation."

In a press release, AMD went on to say that Intel has so far failed to convince any antitrust enforcement agency that its business practices are lawful and pro-consumer. AMD points out past fines and rulings against Intel on similar matters, including a 26 billion won fine (about $25.4 million USD) in 2008, a ruling in 2005 by the Japan Fair Trade Commission finding that Intel had violated the country's anti-monopoly laws, and an ongoing investigation by the FTC here in the States with a trial scheduled for spring 2010.

Read More

Posted 05/13/09 at 10:08:30 AM by Paul Lilly

The European Commission today told Intel it has to cough up $1.45 billion in fines, and it did so without the threat of sharks with fricken' lasers or blowing up the earth. Dr. Evil would be proud.

Intel stood accused of anticompetitive practices, allegedly offering large rebates to computer manufacturers and retail chains in exchange for snubbing rival chip maker AMD. Reports started trickling out earlier this week that Intel would be fined for its actions, with some savvy experts predicting it could be as high as $1.3 billion. While not quite as high, the 1.06 billion euros ($1.45 billion) the EC did settle on sets a new record, dwarfing the 476 million-euro fine it hit Microsoft with in 2004, also a new record at the time.

"Intel has harmed million of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years," European Union Competition Commissioner Neelie Kroes said.

In addition to the exorbitant fine, Intel was order to cease all illegal practices immediately, including halting illegal rebates.

Hit the jump for Intel's reaction!

Read More