ACCC concerned over Oracle takeover bid
- 19 March, 2004 12:09
The ACCC is concerned about Oracle’s proposed acquisition of Peoplesoft.
The organisation has released a statement outlining its concerns, stating that the acquisition may lead to a substantial lessening of competition, which would be in breach of the 1974 Trade Practices Act.
This is in line with a recent US Department of Justice decision which opposed the acquisition.
Oracla has said that it would challenge the Department’s decision.
“Given that the matter is likely to be considered by the US courts, the ACCC will not be taking action at this point,” ACCC chairman, Graeme Samuel, said.
“The ACCC has contacted many Australian organisations, both public and private, which use enterprise application software.
"A significant number of these organisations have stated that the proposed acquisition will restrict their choices significantly and lower the level of competition, especially in relation to complex financial management software and human resource management software.”
The barriers to competing with Oracle and Peoplesoft would be quite significant, Samuel said.
“The software requirements of some organisations are very complex and it is not possible for smaller software companies to meet these needs,” he said.
As reported by ARN, the European Commission has also raised objections regarding the takeover.