U.S. senators ask EU for 'speedy' Oracle-Sun resolution

By Jake Widman
Thursday, 26 November 2009 02:09

Regulation

Fifty-nine U.S. senators have written to the European Commission, asking it to get on with its investigation of Oracle's acquisition of Sun Microsystems. One of the senators suggested that the investigation was an attempt to obstruct American businesses.

The request for action, sent to the acting head of the delegation of the European Commission to the United States, was initiated by Senators John Kerry (Democrat of Massachusetts) and Orrin Hatch (Republican of Utah).

The letter was also signed by 57 other senators from both sides of the aisle.

The EU formally objected to the merger earlier this month and has until January 19, 2010, to decide whether to let the deal go through.

The senators' letter points out that the U.S. Department of Justice already approved the merger, three months ago. Oracle CEO Larry Ellison has said that the EU's delay is costing Oracle US$100 million a month.

The senators wrote, "Due to Sun Microsystems’ deteriorating financial condition and the possible negative effect on employment of the company’s workforce, we respectfully request the European Commission expedite the completion of its investigation into this transaction." 

In a separate statement accompanying release of the letter, Senator Kerry said, "The EC is within its sovereign rights to set the rules for operation in its market, but...it is fair to ask the EC for the basis on which a delay on decision making is warranted and to make a decision one way or the other."

In a somewhat less diplomatic statement, Senator Hatch added, "I have become increasingly concerned about the growing body of evidence that foreign regulatory agencies are unfairly using their review processes to impede the business of American corporations."

Earlier this month, the Wall Street Journal speculated that the German company SAP was influencing the EU to delay the merger.