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Comments: 334 +-   EC Formally Objects To Oracle's Purchase of Sun on Tuesday November 10, @04:26PM

Posted by kdawson on Tuesday November 10, @04:26PM
from the bringing-about-the-most-feared-outcome dept.
database
oracle
sun
eldavojohn writes "The EC has presented Oracle and Sun with a statement of objections. Despite the promotion of former MySQL CEO Marten Mickos, the statement seems to focus entirely on what many have feared: MySQL vs. Oracle databases. From Sun's 8-K SEC filing: 'The Statement of Objections sets out the Commission's preliminary assessment regarding, and is limited to, the combination of Sun's open source MySQL database product with Oracle's enterprise database products and its potential negative effects on competition in the market for database products.' The EU and the EC are getting a rep for disagreeing with US counterparts." On Monday afternoon the DoJ reiterated its support for the deal. Matthew Aslett has a helpful timeline of the action from the EC.
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  • I Object! (Score:5, Funny)

    by Geoffrey.landis (926948) on Tuesday November 10, @04:28PM (#30051764) Homepage
    Well, I'd object to their purchasing the sun as well!!
  • What is the EC?? (Score:2, Informative)

    by Anonymous Coward

    The European Commission (formally the Commission of the European Communities) acts as an executive of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union.

  • EC objects? (Score:2, Funny)

    by Anonymous Coward

    What do DC and Marvel think?

  • by rsborg (111459) on Tuesday November 10, @04:38PM (#30051920) Homepage
    Just spin it off, keep a small interest that will prevent the spun-off unit from going rogue, and claim victory.

    I seriously don't see why Oracle needs MySQL.

    • by Znork (31774) on Tuesday November 10, @05:13PM (#30052434)

      I seriously don't see why Oracle needs MySQL.

      Frankly, Ellisons refusal to spin it off is the strongest indication that the purpose of acquiring MySQL as part of the deal is anti-competitive. As you say, it's not as if Oracle really needs it, so it shouldn't be this much of an issue.

    • by NoYob (1630681) on Tuesday November 10, @05:15PM (#30052472)

      I seriously don't see why Oracle needs MySQL.

      Product mix - as the marketing guys call it. MySQL has a market that Oracle doesn't. How many folks use Oracle as their back end for their websites? Now they have products that cover more of the market for RDMSs; which I believe, makes them the leader, but by no means able to control the market as the EC fears.

  • by Anonymous Coward

    Let's see...MySQL brings in ~50M a year, Sun is losing 100M a month. Makes no sense why Oracle would want to delay, except for monopolistic reasons.

    • by PCM2 (4486) on Tuesday November 10, @05:26PM (#30052626) Homepage

      Let's see...MySQL brings in ~50M a year, Sun is losing 100M a month. Makes no sense why Oracle would want to delay, except for monopolistic reasons.

      Last I heard, Oracle doesn't want to delay. It's the European Commission that wants to delay Oracle.

      As for "monopolistic reasons": Between IBM, Microsoft, Teradata, PostgreSQL, etc, how can Oracle possibly be said to have a monopoly on databases?

      You seem to be suggesting that Oracle wants to destroy the market for MySQL. As the largest database vendor in the world, how does it benefit Oracle to destroy any market for databases, however large or small?

      And that's assuming it's even possible for Oracle to do what you suggest. Even if the goal is merely to destroy the market for low-cost databases, I don't see how Oracle could do that. There is no shortage of low-cost (free) alternatives to MySQL -- PostgreSQL, Firebird, SQLite, the list goes on.

      If Oracle doesn't immediately cave in to the European Commission, have you considered the possibility that it might be because Oracle plans to grow the MySQL market, and that even at $100 million/month, it has not yet sacrificed enough profit to make up for all the money it plans to make from MySQL in the coming years?

      • Re: (Score:3, Insightful)

        by Tom (822)

        As for "monopolistic reasons": Between IBM, Microsoft, Teradata, PostgreSQL, etc, how can Oracle possibly be said to have a monopoly on databases?

        The job of the EC anti-trust commission is to prevent monopolies before they happen, not punish them when they do (the way the Sherman act works in the US). So their fear is not that Oracle would be a monopoly, but that it comes too close to being able to corner the market. You don't need a monopoly for that, just a commanding influence.

  • I disagree (Score:5, Interesting)

    by stephanruby (542433) on Tuesday November 10, @04:41PM (#30051958)
    Oracle is marketed as an high-end database product/set of services. MySql is a low-end one (and please, don't misinterpret this as shot against it). Now, I'm not saying that you won't find companies replacing their Oracle database with a MySql one, but those are very few and far between. Between Oracle and MySql, there are actually quite of slew of decent alternatives (both proprietary and open source).
    • Re:I disagree (Score:4, Interesting)

      by Hognoxious (631665) on Tuesday November 10, @05:26PM (#30052624) Homepage Journal

      MySql is a low-end one (and please, don't misinterpret this as shot against it).

      But MySQL is low end. It's about as low end as you can go without using MS Access.

      Is it a shot against it if what you're saying is true?

    • Re:I disagree (Score:5, Insightful)

      by Ukab the Great (87152) on Tuesday November 10, @05:38PM (#30052762)

      I think Oracle's target market are the web 2.0 cowboys who originally went with MySQL, grew up and realized they needed something more robust, and are currently tied to MySQL because those other alternatives would break their extremely MySQL-specific code. If Oracle can provide a flawless backwards compatibility layer for MySQL, they'd have an edge over the other guys.

      • Re: (Score:3, Insightful)

        by PCM2 (4486)

        What about the Berkeley DB they bought? They'll just need postgresql and sqlite next.

        And how would Oracle "buy" either of those? And why? PostgreSQL is BSD-licensed and SQLite is public domain. Oracle is free to start selling its own version of either package tomorrow, if it felt like it.

  • by wandazulu (265281) on Tuesday November 10, @04:45PM (#30052018)

    As I remember it (and I could be remembering it wrong), Sirrus and XM were allowed to merge because the likelihood of both companies continuing without a merger were essentially nil.

    Would the EU perform a similar analysis on Sun and figure that, given its situation, the option is either merge with Oracle or go bankrupt, in which case the situation is, conceptually, the same because either way Sun ceases to be a player. Or do they not consider this and simply line up the bullet points, see too much overlap, say no to the merger (which is not the same as an objection, I realize), and just hope that Sun can pull it together by itself?

    • by vlm (69642)

      As I remember it (and I could be remembering it wrong), Sirrus and XM were allowed to merge because the likelihood of both companies continuing without a merger were essentially nil.

      Neither Sirius nor XM could merge while spinning off one of their satellite radio operations into a new company, to maintain a "semi-free market" or a "free-er market".

      It would be trivial to sell off mysql. Heck, give it away. Sell it to the FSF for $1?

    • by Znork (31774) on Tuesday November 10, @05:03PM (#30052266)

      the option is either merge with Oracle or go bankrupt

      If Sun goes into reorganization or liquidation assets like MySQL would probably be sold off and Oracle would likely be blocked as a buyer of MySQL, so the EC's main objection would be resolved in an acceptable fashion either way. The purpose of government in a competitive free market should be exactly that; prevent anticompetitive behaviour and structures, not support failing companies.

  • by rcolbert (1631881) on Tuesday November 10, @05:01PM (#30052248)
    This is somewhat like preventing Mercedes-Benz from buying Kia in order to prevent a monopoly. As well-stated earlier, Oracle doesn't compete against MySQL often if at all. IBM and Microsoft appear to be the most legitimate competition Oracle has in their DBMS space, and MySQL wouldn't seem to impact the competitive balance all that much. Having said that, who would want MySQL? Cisco, HP, and EMC don't seem like good choices because they all have product families that each would hate to have to tie to a 'Runs Best with MySQL' campaign. Red Hat makes sense from a certain point of view, but I'm not sure they want to diversify into the DBMS space.
    • Re: (Score:3, Insightful)

      by mbrod (19122)
      I see many people, you included, thinking of this in terms of what MySQL is now. It would be terribly short sighted for every merger and acquisition evaluated by the appropriate regulatory bodies to look at it in that way. They need to look at in terms of what MySQL could grow in to. What MySQL could grow in to is what Oracle would compete with. Which is why Oracle wants to squash it and eat it. EC is right on and will stop this.
  • by paulsnx2 (453081) on Tuesday November 10, @05:14PM (#30052444)

    IBM may be doing what they can to stir the pot on this. With each delay, Sun's survival is more in question, and more business can be sucked away from Sun by IBM.

    The objection (that Oracle will have "control" of an Open Source product like MySQL) is absolutely absurd. First of all, there is nothing Oracle can do to prevent others from continuing to update and support MySQL under GPL. Many Open Source projects continue under GPL. MySQL has a huge "out of Oracle's reach" GPL effort already.

    Secondly, the database market is dynamic with many new competitors entering the field. MySQL as a relational database faces competition from a host of nonSQL databases whose performance and capacity relational databases cannot match.

    The real problem with the merger is politics for profit and spite. Heaven forbid the EU allows two American companies to merge. The EU likes to keep their own mergers to a minimum .... like with Airbus?

  • A Rep? (Score:5, Interesting)

    by theillien (984847) on Tuesday November 10, @05:22PM (#30052566)
    According to the article the last time the EU/EC contravened a takeover was when they denied General Electric's takeover of Honeywell in 2001. I'd hardly call two denials in a decade a reputation for disagreeing with the US on these matters.
      • Re: (Score:3, Insightful)

        by 0x000000 (841725)

        Why should the US be able to decide what is good for Europe and its consumers? Sun and Oracle have the choice of no longer doing business in Europe at which point the EC won't have anything to do with their merger!

        US regulations suck for consumers, whereas the EC attempts to work for the consumer. That is the reason for the difference, and whether you like it or not that is how it will continue to be done as multi-nationals can't just stop selling in the EU or the US just because one of them is more favoura

    • Re:Okay... (Score:5, Funny)

      by Anonymous Coward on Tuesday November 10, @04:33PM (#30051828)
      European Commies
    • Re:Okay... (Score:5, Informative)

      by Anonymous Coward on Tuesday November 10, @04:36PM (#30051880)

      The EC is.. who now?

      EC is European Commission http://en.wikipedia.org/wiki/European_Commission [wikipedia.org]

    • Re:Okay... (Score:5, Insightful)

      by mwvdlee (775178) on Tuesday November 10, @04:43PM (#30051986) Homepage

      http://en.wikipedia.org/wiki/EC [wikipedia.org]

      Effectively, it's the EU.

      Population of EU is about 500 million vs. 308 million for the USA, so the EC is kinda significant.

      • Re: (Score:2, Funny)

        Bah. You can't count those Europeans as a whole person!
        • Re: (Score:3, Insightful)

          by Anonymous Coward

          No, the current european-american exchange rate is about 1 to 1.5, so you should count each of us as 1.5 person.

          (no seriousness intended)

        • Re: (Score:3, Funny)

          by Hognoxious (631665)

          They have socialized healthcare, i.e. euthanasia committees, so by next week they'll all be dead.

          Stephen Hawking might escape, if his wheelchar can make it to the US embassy (free sovereign soil! NUMBER ONE!) in time.

        • Re:Okay... (Score:5, Funny)

          by Jesus_666 (702802) on Tuesday November 10, @07:40PM (#30054110)
          You're right. If we go by body mass, one European (~70 kg) makes about 1/4th of an American. But hey, by that same metric, the USA have about the same population as China!
      • Mod parent up, I'm tired of the /. eds assuming i know what every god damned acronym means. (Sure I can google it, but usually I just move on)

        That's assuming you get right definition of "EC". Everyone here seems to assume that googling things will give you the correct or relevant answer.

        For example, I googled it and E. Coli doesn't want Oracle in Athens to predict what Apollo will say.

        So there!, "why don't you google it" Nazis!

        • Re: (Score:2, Funny)

          by Anonymous Coward

          If I posted this about the acronym "US" you can be damn sure I would mbe modded troll in a heartbeat.

          And they are?

        • Re: (Score:3, Insightful)

          They didn't post EU. If I posted NGA would you automatically know what I was talking about?

          • Re: (Score:3, Funny)

            by Culture20 (968837)

            If I posted NGA would you automatically know what I was talking about?

            That's completely offensive. I'll have you know my ex girlfriend is black. CRKR.

            ...but, to answer your question: no.

        • Re: (Score:3, Informative)

          As an Australian and on Rememberance Day, I withhold my sense of humour for a moment and object to your use of the term "Digger". We use it as a term of endearment toward people who go out and get their asses shot off on our behalf, and something we respect them highly for. Don't dilute that coin please.
    • Re:F the EC (Score:5, Insightful)

      by int69h (60728) on Tuesday November 10, @04:57PM (#30052180)

      Actually they're multinational companies, and Oracle stands to lose a fair chunk of change if they can't do business in EU countries. Not that I agree with this retarded group's findings. The whole "Can't sustain development without being able to sell proprietary licenses" is bunk. Plenty of opensource projects thrive without being able to sell proprietary licenses. Linux springs to mind.

    • by Zocalo (252965)
      You raise a very interesting point - other than the fact that both the companies concerned trade within the EU, this is within the EU's jurisdiction how, exactly? Since this is about two US companies wanting to merge and the US DoJ is happy with the deal, does anyone actually know what the EC/EU actually can do about it? For instance, can they block the deal outright, escalate the dispute to the WTO or some such to prolong matters, or what? And if they can't prevent the deal going ahead, then can they pl
      • Both Oracle almost certainly have EU-based subsidiary companies in various European countries, so I imagine they could - at the very least - block the merger of those.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        They can and will fine them, just like they fined Microsoft and Intel. You don't pay? Get fined again. Still don't want to pay? Do your business elsewhere and say bye bye to the biggest market in the world.
        If you want to make business within the EU abide you will have to abide to the rules.

    • by h4rr4r (612664)

      I hear they like to sell their stuff in the EU, so maybe they should care.

      They could not threaten the EU, for fear it would declare their copyrights null and void.

      You seem to have a pretty messed up sense of how the world works.

    • Both Oracle and Sun do an enormous amount of business in Europe and as such I expect they operate locale offices or divisions that exist as entities subject to European law.

      Similarly US subsidiaries of organizations such as Siemens who are primarily European are subject to US law. (And why it was legal for Cuba to nationalize all those companies way beck when, their ball, their rules.)

    • Yeah, right. Oracle is letting one of it's largest markets fall just so they don't have to sell MySQL.

    • Seriously, what can the EC do about it?

      Forbid them from selling their stuff in the EU. Somewhere between a quarter and a third of Oracles income comes from the EU. That is a significant amount of money they cannot afford to lose.

        • Re:F the EC (Score:5, Insightful)

          by Tom (822) on Tuesday November 10, @06:05PM (#30053082) Homepage Journal

          Well, standing up to badly behaved American companies.

          Try some research before you post nationalistic crap like that. The EC has fined european companies in the billions range for violations of anti-corruption laws, does the same anti-trust checks on european companies and so on.

          Wake up. 50 years ago, the US had the moral high ground on the rest of the world, but you can't go downhill forever without losing it.

          • Re:F the EC (Score:4, Insightful)

            by laddiebuck (868690) on Tuesday November 10, @09:26PM (#30055154)

            Moral high ground? Would that be after stooping to the level of the USSR in playing third-world countries like pawns -- the CIA coups in Iran or Guatemala in the early fifties? After backstabbing her allies at Suez a few years later? Or after encouraging the Hungarians that same year? Or were you thinking back to the World War -- and the wonderful economic timing of joining it two years late, when her last ally was finally bankrupt?

            Come to think of it, I can't remember any instance where the US had the moral high ground since its revolution. Sure, if you compare it to the Soviet Union, it had the moral high ground, but that's not much of a comparison, is it?

            This isn't a dig at the US, it's a decent country. But far too much of its propaganda is still believed, probably because it's top nation.

    • Re:Good Business (Score:5, Insightful)

      by Anonymous Coward on Tuesday November 10, @05:33PM (#30052722)

      If you think MySQL is any threat to Oracle, then you don't understand anything about the commercial database market.

      • According to MySQL's site, Oracle and MySQL comprise around 52% of the of all deployed databases [mysql.com]. If you don't understand that authorizing a deal which would enable a company which already controls 47% of the market share [computerworld.com] to form a company that controls such a dominant stake in the database market is bad for the market then you would most certainly benefit from investing a couple of minutes thinking about this subject.
    • Re:Good Business (Score:4, Informative)

      by swordgeek (112599) on Tuesday November 10, @05:53PM (#30052952) Journal

      "Some hardware engineering but that SPARC stuff really isn't competitive."

      Really?

      How much do you know about "that SPARC stuff?" It's true that x86 has finally surpassed a lot of the things that Sparc led the way in, but there are still ways that traditional Sparc scales better.

      Now moving to the next generation of Sun's gear, we have hardware virtualisation and CoolThreads. Under a hundred grand will buy you a system with four 8-core CPUs, and each core can process eight simultaneous threads. That is OLTP nirvana! Too much power? Chop it up into a handful of smaller servers, each running their own OS. Any one of them can in turn be split into zones--soft OS partitions.

      I keep hearing about how Sparc is obsolete, and yet the new generation of Sparc processors and supporting hardware is pushing the state of the art that Intel and AMD aren't even planning in yet.

      • Re: (Score:3, Informative)

        by bertok (226922)

        "Some hardware engineering but that SPARC stuff really isn't competitive."

        Really?

        How much do you know about "that SPARC stuff?" It's true that x86 has finally surpassed a lot of the things that Sparc led the way in, but there are still ways that traditional Sparc scales better.

        Now moving to the next generation of Sun's gear, we have hardware virtualisation and CoolThreads. Under a hundred grand will buy you a system with four 8-core CPUs, and each core can process eight simultaneous threads. That is OLTP nirvana! Too much power? Chop it up into a handful of smaller servers, each running their own OS. Any one of them can in turn be split into zones--soft OS partitions.

        I keep hearing about how Sparc is obsolete, and yet the new generation of Sparc processors and supporting hardware is pushing the state of the art that Intel and AMD aren't even planning in yet.

        Umm... what?

        First of all, for "a hundred grand", I can buy 10 systems that add up to 80 Intel 3Ghz cores (160 threads) with 720GB of memory, which is going to shit all over that SUN box with its anemic 1Ghz processors. That's retail pricing, in Aussie dollars! Including tax! Delivered to your door in under a week, assembled!

        Meanwhile, to get that SUN box, I'd have to "call your nearest SUN dealer". Oh good, I can't wait to have him explain to me how spending $100K is going to "save me money", or something.

        I

    • Re: (Score:3, Insightful)

      Although these companies are primarily based in the US they have some fairly substantial operations in the EU. I don't imagine that they like the idea of moving those, especially if it involves moving them further from a market that they're trying to sell into. Europe probably would miss Oracle and MySQL but Oracle-Sun would probably miss having a presence in an enormous market and would not welcome the costs of moving parts of their operation into the US or to other places outside the EU.

      When they entere

Executive ability is prominent in your make-up.