Page last updated at 21:27 GMT, Wednesday, 21 October 2009 22:27 UK

EU warns Oracle over Sun takeover

Sun Microsystems mouse and mouse-mat
Sun has suffered long-running financial problems

Oracle has so far failed to produce evidence to ease concerns that its purchase of Sun Microsystems would be anti-competitive, the EU has said.

Competition Commissioner Neelie Kroes said she was "disappointed" by the lack of proposals to placate EU worries.

Business software firm Oracle has proposed a $7.4bn (£4.5bn) takeover of hardware and software maker Sun.

The EU is concerned the deal could breach competition rules, leading to higher prices and less choice.

Doubts persist within the European Commission about Oracle having control of Sun's MySQL database business.

On Wednesday, a spokesman for Ms Kroes said the commissioner had "expressed disappointment that Oracle had failed to produce, despite repeated requests, either hard evidence that there were no competition problems or, alternatively, proposals for a remedy to the competition problems identified by the Commission".

Eben Moglen, founding director of the Software Freedom Law Center, said the comments were "bad news for Oracle".

The US Department of Justice has already given its approval to the deal, agreed in April.

'No conflict of interest'

Earlier this week, Sun said it would cut 3,000 jobs over the next year while it awaited the verdict of the EU investigation into Oracle's takeover, which is due on 19 January.

They are the latest in a series of cuts to be made by the firm, which has suffered prolonged financial woes. Oracle said last month that Sun was losing $100m (£61m) every month.

Oracle maintains that there would be no conflict of interest and has promised not to sell off MySQL to get the deal approved.

It is looking to strengthen its position against IBM, which abandoned its own attempts to buy Sun earlier this year.



Print Sponsor


SEE ALSO
Sun to cut 3,000 jobs amid probe
20 Oct 09 |  Business
EU probe 'costing Sun millions'
22 Sep 09 |  Business
EU to probe Oracle's Sun takeover
03 Sep 09 |  Business
Oracle gets go-ahead to buy Sun
21 Aug 09 |  Business
Oracle in $7.4bn deal to buy Sun
20 Apr 09 |  Business
IBM-Sun takeover talks 'collapse'
06 Apr 09 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific