Oracle, the world"s No. 2 software company, is warning the European Commission that if it does not approve the company"s proposed US$9.4 billion hostile takeover of PeopleSoft, regulators might have another run-in with No. 1 -- Microsoft. Oracle argues that Microsoft has designs on dominating the business-applications industry. In a closed hearing before the Commission on Wednesday, Oracle made its case that Microsoft would be a major competitor in the business-applications space, and that it might become another antitrust problem.
No Slam Dunk
Microsoft has indeed made a move to compete in business software, but it has had to take a backseat to SAP, PeopleSoft and Oracle. Microsoft has not developed applications that address the needs of large enterprises -- yet. That could take years. Industry observers in Europe and the U.S. say Microsoft is not relevant to the current marketplace inhabited by SAP and Oracle. "You"re not talking about a cookie-cutter product that Microsoft can just plop onto the marketplace," said Yankee Group"s Laura DiDio.