Oracle, the world’s second-largest software maker, faces an “uphill battle” in persuading European Union antitrust regulators to approve its planned $7.4 billion purchase of Sun Microsystems Inc., lawyers said.
The European Commission, the EU’s competition authority, has threatened to block the deal because of concerns that Oracle might be able to eliminate Sun’s MySQL database product as a competitor, according to an EU document. Oracle will counter the EU’s case at a closed-door hearing this week in Brussels.
“It’s an uphill battle for Oracle,” Charles van Sasse van Ysselt, a competition lawyer at NautaDutilh in Brussels, said in an interview. “It’s unlikely that the commission will change its view following an oral hearing because usually all the arguments have been made and extensive evidence has been sent.”
Oracle Chief Executive Officer Larry Ellison said in September that he won’t sell MySQL, which is a key part of the Sun acquisition. The commission’s delay in approving the deal is costing Santa Clara, California-based Sun $100 million a month, he said. Oracle, based in Redwood City, California, will present its case on the first day of the hearing starting tomorrow.
Eben Moglen, a Columbia University law professor and director of the Software Freedom Law Center, and officials from Ericsson AB, the world’s largest maker of wireless network equipment, will present arguments on behalf of Oracle on the second day of the hearing, people familiar with the case said. Oracle rivals SAP AG and Microsoft Corp., the world’s largest software maker, will also have an opportunity to discuss their concerns about the merger during the hearing.
Oracle Arguments
Oracle will argue that the commission hasn’t proved how Oracle can raise prices for its products by removing MySQL as a competitor, according to the people, who declined to be identified because the EU hearing is confidential. The company will also…