Washington thinktank objects to Oracle's PeopleSoft bid


A Washington thinktank - The National Legal and Policy Center of Falls Church - has urged the US government to block Oracle's proposed takeover of PeopleSoft.

The NLPC issued a statement saying Oracle's attempts to buy PeopleSoft "clearly violates federal antitrust laws." and that the merger of JD Edwards and PeopleSoft raises even more antitrust issues.

The NLPC, a legal foundation that runs the Corporate Integrity Project, said a combination of Oracle and PeopleSoft would be detrimental to software customers that include hospitals, universities, manufacturers and state governments.

As a result, the NLPC wrote to the US Department of Justice on Tuesday to urge antitrust regulators to stop the deal. "The proposed hostile takeover of PeopleSoft by the rival software firm Oracle Corporation clearly violates federal antitrust laws," wrote Kenneth Boehm, chairman of the NLPC.

"This attempted hostile acquisition would significantly reduce competition in large enterprise applications, inflict severe financial damage on PeopleSoft customers who have heavily invested in the company's software applications, and inappropriately pressure the 40 percent of PeopleSoft customers who use database products from IBM and Microsoft to switch to Oracle," Boehm wrote.
He added that the takeover would result in the second, third and fourth largest applications firms combining. "That would further limit competition, resulting in higher prices for organizations that depend on this software to run their operations," he said. "Oracle's hostile bid is just a bad deal for all concerned. We believe that unethical and anticompetitive practices by corporations undermine public support for free market principles," he said.

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