The Australian Competition and Consumer Commission has concerns that the proposed acquisition of Peoplesoft Inc. by Oracle Corporation may lead to a substantial lessening of competition in breach of the Trade Practices Act 1974, ACCC Chairman, Mr Graeme Samuel, said today.
The ACCC's concerns are in line with the recent decision by the U.S. Department of Justice to oppose the acquisition. Oracle has stated that it will challenge the Department of Justice'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", Mr Samuel said. "The ACCC recognises that the proposed acquisition has wide ranging international consequences.
"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 ACCC considers that barriers to competing with Oracle and Peoplesoft are significant. The software requirements of some organisations are very complex and it is not possible for the smaller software companies to meet these needs".