The battle began in June this year when Oracle, a major player in the enterprise software market, submitted an offer to purchase its rival. Enterprise software deals with the co-ordination of business functions such as financial planning and reporting, human resources and supply chain management. At the time the bid was largely seen as a spoiler to prevent PeopleSoft amicably acquiring another player in the market, JD Edwards.
That acquisition went ahead, but Oracle has stuck to its plans to buy PeopleSoft, despite lawsuits filed against it by PeopleSoft, JD Edwards and the State of Connecticut. Antitrust investigations by the Department of Justice and the European Commission have also been instigated.
The Commission has been carrying out a preliminary investigation for the past month, and yesterday announced that a more detailed inquiry was required. The Commission stressed that the opening of the new investigation did not prejudge the final outcome, but it is concerned that if the deal goes ahead, SAP of Germany will become the only major competitor in the market for enterprise software.
PeopleSoft welcomed the news, calling it a reflection of "what we believe is the Commission's concern about the anticompetitive impact of Oracle's unsolicited tender offer on the industry."
Oracle spokesman Jim Finn told Reuters:
"We have said before that we felt a phase two review would be initiated, so we are not surprised by the European Commission's decision. We continue to work closely with the EC throughout this process."
The Commission now has four months in which to investigate and issue a ruling.