European Union regulators Thursday launched an antitrust probe into U.S. software maker Oracle Corp.’s takeover of Sun Microsystems Inc., saying they wanted to make sure Oracle wouldn’t hinder Sun’s rival open-source database software.
EU approval is the main stumbling block for the $7.4 billion deal, which Oracle had hoped to close this summer and has already been cleared in the U.S. by the Department of Justice.
The European Commission now has until Jan. 19 before it makes a final decision to clear the deal or block it. In some cases, such as with Intel Corp., the EU has been a stricter antitrust regulator than the U.S., and often presses companies to make changes that eliminate antitrust worries, such as selling off parts of their business.
EU Competition Commissioner Neelie Kroes said regulators needed to examine whether customers could have less choice or see higher prices “when the world’s biggest proprietary database company proposes to take over the world’s leading open-source database company.”
Sun bought open-source database provider MySQL last year for $1 billion as a way to find more customers for its computer hardware. Because MySQL (pronounced “my sequel”) is open-source, its underlying coding is given away for free, and Sun doesn’t sell the software itself. In contrast, Oracle is a leading vendor of database software that gets sold to businesses.
Database software forms the underpinnings of most things people do in business or on the Web. It helps companies manage and retrieve data they’ve stored, such as payroll or sales information. Typing in a search term, for example, forces a Web site to scour a database and spit out an answer.
The EU officials claim that MySQL, already popular among Web-based companies, will increasingly threaten Oracle’s database software as it adds features and attracts more customers. The regulators questioned “Oracle’s incentive to further develop MySQL…